Subscribe free to our newsletters via your
. Earth Science News .

China banking system 'stable' despite fund squeeze
by Staff Writers
Shanghai (AFP) June 29, 2013

China's bank regulator said Saturday that a recent liquidity squeeze would not hurt the stability of the banking system, in the latest government effort to soothe concerns over the funding shortage.

For three weeks, funds have been in short supply on China's interbank market, and the interest rates banks charge to lend to each other have surged to record highs.

Head of the China Banking Regulatory Commission, Shang Fulin, said the overall banking system had adequate liquidity, echoing comments by the central bank earlier in the week.

"These days the issue with tight liquidity in the interbank market has started to ease," Shang told a financial forum in Shanghai.

"This situation will not affect the overall pattern of stable operations in the domestic banking sector," he said, adding domestic financial institutions had excess reserves of 1.5 trillion yuan ($244 billion) on Friday.

China's central bank chief Zhou Xiaochuan, speaking a day earlier, offered assurances that the People's Bank of China would use multiple tools to "ensure the overall stability of the market".

There are worries tight liquidity among banks could prompt them to tighten lending, which threatens to carry over into the real economy.

State media has reported that banks are struggling to meet their payment obligations as around 1.5 trillion yuan worth of wealth management products mature at the end of June.

A top official of one of China's big four banks, the Agricultural Bank of China, said Friday that lenders should step up risk control and allocate financial resources to the right places.

"The recent liquidity shortage in the market to some extent has something to do with overly high financial leverage and rapid expansion of shadow banking," Agricultural Bank deputy chairman Zhang Yun told the forum.

Shang, the banking regulator, also called for more attention by domestic banks for risk control and liquidity management.

But he played down risks from local government debts, another issue which has sparked worries over China's economy.

"Recently some foreign institutions and industry players showed concern about risk in areas including local government debts," Shang said.

"As long as we apply the right risk-management measures, these risks are controllable," he said.

China's top auditor recently put outstanding debts held by 18 of the country's 31 provinces and major municipalities at 3.85 trillion yuan in 2012, the official Xinhua news agency reported Thursday.


Related Links
The Economy

Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks DiggDigg RedditReddit GoogleGoogle

Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

Exclusive: World Bank's Kim says no country immune from turmoil over inequality
Washington (AFP) June 28, 2013
No country in the world is immune from unrest arising from poverty and inequality, World Bank President Jim Yong Kim told AFP in an exclusive interview. The protests in Brazil, Turkey, and elsewhere show that even governments that have made significant efforts already cannot let up in programs to help the poor, he said. "There's no country in the world that is immune from having this kin ... read more

RESCUE Consortium Demonstrates Technologies for First Responders

India chopper crash kills 20 as flood rescue forges on

India rescue chopper crash death toll rises to 20

WIN-T Increment 1 Enables National Guard to Restore Vital Network Communications Following a Disaster

Major rethink needed if chemical industry is to meet greenhouse gas targets

U.S., Japan work to analyze disaster radiation levels

Laser guided codes advance single pixel terahertz imaging

New laser shows what substances are made of; could be new eyes for military

Scientists urge New Zealand to save 'sea hobbit'

Scientists Discover Thriving Colonies of Microbes in Ocean 'Plastisphere'

Clearing up confusion on future of Colorado River flows

Ethiopia insists on talks with Egypt to solve Nile row

Is Arctic Permafrost the "Sleeping Giant" of Climate Change?

The rhythm of the Arctic summer

Global cooling as significant as global warming

Warm ocean drives most Antarctic ice shelf loss

Rapid colorimetric detection technology enables illegal cooking oils with no place to hide

China officially opens EU wine investigations

How Size-related Food Labels Impact How Much We Eat

Airborne gut action primes wild chili pepper seeds

3,000 still missing in India's flood-hit north: official

Tropical Storm Dalila strengthens on way to west Mexico

India steps up grim search for bodies in flood zone

New Jersey may have been hit by a tsunami in mid-June

UN peacekeepers take over ahead of Mali polls

Obama: no Cold War for Africa

Nigerian troops deadly rampage in April incident: report

Mali coup leader says sorry: military source

What Is the Fastest Articulated Motion a Human Can Execute?

Skull find challenges claim about first white man in eastern Australia

Lessons at home and homework at school in US

Social network size predicts social cognitive skills in primates

The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement