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China watchdog calls for banks to meet private sector credit demand

Staff Writer |
China's banking and insurance regulator is calling for banks to meet credit demand from private firms "to the greatest possible extent", a top journal of China's ruling Communist Party said.

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inese banks are wary of a fresh spike in bad loans after years of pressure from regulators to reduce riskier lending and an some entrepreneurs have begun questioning the effectiveness of Beijing's policies.

"(Banks) should satisfy the effective credit demand from enterprises to the maximum extent," the party committee of the regulator wrote in the ideological journal Qiushi, or Seeking Truth.

Banks should not apply a one-size-fits-all approach to withholding loans, while providing financing to private enterprises with low debt ratios and robust risk controls, Qiushi said, adding that lenders should help firms whose liquidity has been hit by trade tensions with the United States.

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