China Banking Authority to Strengthen Credit Management and Lending

China's banking and insurance regulator said on Friday that the country's banks and financial institutions will be guided to strengthen credit management, including excessive lending and debt evasion.

Qualified banks and institutions are encouraged to form a joint credit committee to share information on corporate debt evasion and to firmly crack down on such behaviour, according to a notice on the China Banking and Insurance Regulatory Commission's (CBIRC) website.

"To avoid excessive lending, reasonable financing will be provided based on prudent assessment," the regulator stated.

CBIRC added that banks and financial institutions should not relax risk management requirements in order to gain customers.

Guo Weimin, spokesperson for the Chinese People's Political Consultative Conference (CPPCC), said at a news conference that China intends to deepen financial sector reform to better serve its small businesses.

The CPPCC, the country's top political advisory body, will hold its annual meeting this weekend, while the National People's Congress, the country's legislature, will meet separately.