21 February 2020

Banks asked to support overcapacity reduction, govt says

Shang Fulin {尚福林}, chairman of the China Banking Regulatory Commission (CBRC), has urged lenders to properly handle and prevent credit risks in industries with overcapacity problems by safely disposing of bad loans and providing customized financial services, according to a copy of his speech published on the banking regulator’s website on Monday. The CBRC chief also encouraged firms in the cement, iron and steel, and other sectors with overcapacity problems to expand into rural and overseas markets, while calling on banks to step up support for mergers and acquisitions in those industries.

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