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

Subscribe free to our newsletters via your

China's banking system stable amid global crisis: regulator

China's economy grew nine percent in 2008, slipping back into single digits for the first time in six years as the impact of the global crisis kicked in. In the final quarter, growth slowed to 6.8 percent.
by Staff Writers
Beijing (AFP) Feb 26, 2009
The global economic crisis has had little impact on China's banking system, which remains sound and stable, the nation's banking regulator said Thursday.

"The financial crisis has had a limited impact on the Chinese banking system and the risks are under control," China Banking Regulatory Commission chairman Liu Mingkang told a briefing in Beijing.

"Our banking system so far remains sound and stable, although China cannot be immune from the global crisis."

The bad, or non-performing loan ratio for China's banks dropped 3.71 percentage points to 2.45 percent at the end of 2008, Liu said.

His reassuring comments about the situation in China were in contrast to the turmoil that banks around the world have experienced since the economic crisis erupted last year.

Nevertheless, Liu said Chinese authorities understood China's economy was "highly intertwined with the rest of the world" and the economic crisis was worsening.

To combat this, Liu said Chinese authorities would provide stronger financial support to maintain economic growth, while paying close attention to risk management.

China's economy grew nine percent in 2008, slipping back into single digits for the first time in six years as the impact of the global crisis kicked in. In the final quarter, growth slowed to 6.8 percent.

This has prompted the government to pull the fiscal levers, unveiling a record four-trillion-yuan (580-billion-dollar) spending package, mostly large-scale infrastructure projects, in November last year.

The banking sector -- especially the four large state-owned commercial lenders -- are expected to play a crucial role in facilitating the financing of these projects.

The banks appear so far to have heeded the calls, extending a record amount in loans in January.

The loans, totalling an estimated 1.2 trillion yuan (175 billion dollars), were focused on road, power, railway, and other infrastructure projects, state media said earlier this month.

The rapid expansion of credit has triggered concerns that bad loans could rise again, as banks could start lending more indiscriminately.

Liu, the banking regulator, demurred from giving any indication whether China would continue to invest its massive foreign exchange reserves in US Treasury bonds.

"We have strong trade and have attracted a lot of foreign investment, which gives us a significant amount of foreign exchange, and of course we need to invest it," he said.

"We want to invest our foreign reserves based on the principles of safety, liquidity and profitability. US Treasury bonds are just one option," Liu said.

China's foreign exchange reserves, the world's largest, stood at 1.95 trillion dollars at the end of December, the most recent figure available.

During a visit to Beijing last weekend, US Secretary of State Hillary Clinton urged China to keep buying US debt, saying it would help jump-start the flagging US economy and stimulate imports of Chinese goods.

Share This Article With Planet Earth DiggDigg RedditReddit
YahooMyWebYahooMyWeb GoogleGoogle FacebookFacebook

Related Links
The Economy

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

Asia's economic woes deepen as Obama vows to beat crisis
Hong Kong (AFP) Feb 25, 2009
Japan on Wednesday posted a record trade deficit and Hong Kong said its economy would shrink by up to three percent in 2009 as recession woes deepened across Asia.

  • Floods, landslides kill six in Indonesia: officials
  • Indonesian mud victims to receive compensation: company
  • Midnight Oil reunite for wildfires relief concert
  • One killed in Romanian military lab explosion

  • Obama calls for carbon cap legislation
  • Climate change: Atlantic shift has global impact
  • Analysis: Emission monitoring puzzles reps
  • Climate change risk underestimated: study

  • Satellite Data Provide New View Of Smoke From Wildfires
  • Orbital's Launch Of Taurus Rocket Is Unsuccessful
  • Counting Carbon
  • Google shoots down 'Atlantis' pictures

  • Oil Sensor For Continuous Engine Oil Monitoring
  • Smart Power Transformer Station
  • Analysis: Nigeria seeking reform for oil
  • Analysis: Russia enters LNG market

  • NASA Study Predicted Outbreak Of Deadly Virus
  • McMaster Researchers Discover New Mode Of How Diseases Evolve
  • Climate Change May Alter Malaria Patterns
  • Hong Kong bird tests positive for H5N1

  • Urban elephants ply Bangkok streets in search of tourist dollars
  • Great Lake's Sinkholes Host Exotic Ecosystems
  • Bizarre Bird Behavior Predicted By Game Theory
  • Ribosome Building Blocks

  • Polluters pay under Obama's 'green' budget
  • Russian navy accepts blame for oil spill off Ireland
  • Supreme Court mulls who pays after toxic spills
  • China's environment problems serious: minister

  • Emotions May Be More Reliable When Making Choices
  • Internet Emerges As Social Research Tool
  • Walker's World: The dangerous border
  • Appalachian History Gives New Perspective of How Workers View Jobs

  • The content herein, unless otherwise known to be public domain, are Copyright 1995-2007 - SpaceDaily.AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. 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 SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement