BEIJING- Chinese banks must restrict activities "observation" and off-balance loans trust on their books to help repel possible risk, regulator of banking top of the country, said Monday.
"The situation of dark rest risk control," China Banking Regulatory Commission Liu Mingkang President, said in a speech posted on the website of the Agency (www.cbrc.gov.cn). "We must closely follow the developments of the real estate market and improving our research and evaluation on the market and strengthen surveillance of the trusts of property."
Banks should restrict "observation" - a reference to the off-balance activities and "itself" to follow the official calendar to correct such loans, added Liu.
Last year, banks rushed to sell loans to trust to remove from their balance sheets until regulators plagued practice and told to return trust loans on their balance sheets at the end of 2011banks, companies.
Media and reported earlier that the authorities can further tighten control on property trusts in ordering real estate developers to set the side more cash before they sell their projects to investors through trusts.
Liu also reiterated his warning about the risks of loans to vehicles of financing local and vow to clean up these debts.
Chinese banks have extended a huge amount of loans, some researchers have estimated at 10 trillion yuan ($1.5 billion), vehicles of finances of the local government since China began its massive economic recovery at the end of 2008.
(Yuan Chinese $1 = 6.493)
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