SHANGHAI, June 14 The Shanghai branch of China's
central bank is asking city lenders for information on asset
quality, credit needs and potential risks on top of what all
Chinese banks are preparing for a routine assessment, two people
with direct knowledge of the matter said on Wednesday.
Banks in Shanghai recently received a notice from the
People's Bank of China (PBOC) asking them to provide the current
size and industry distribution of their loan portfolio and
report on how new loans in 2017's first half compared to a year
earlier, the two people said.
The Shanghai office of the PBOC also requested information
on any impact the increased regulatory scrutiny has had on new
loans, off-balance-sheet assets and the movement of assets from
off-balance-sheet to on-balance-sheet, they added.
The PBOC was not immediately available for comment.
The notice was sent at a time Chinese banks have been
preparing for the quarterly Macroprudential Assessments (MPA)
that the central bank conducts for all lenders.
China's banks have come under tougher regulatory scrutiny
since the beginning of this year after the banking regulator
released a slew of requests for self-inspections on matters
ranging from credit risk to compliance.
According to the people knowledgeable about the PBOC
Shanghai notice, it asked banks there whether bond issues have
had an impact on credit needs and whether enterprises having
difficulties issuing bonds have pivoted to borrowing, the people
In addition, the PBOC wants to know about the impact policy
changes have had on loans to developers and mortgages, the
(Reporting by Li Zheng and Engen Tham in Shanghai; Editing by