SHANGHAI Dec 28 Shanghai's banking regulator
has told domestic commercial banks in the commercial hub to keep
up lending to small firms and increase their tolerance for bad
loans, two sources told Reuters on Wednesday.
The Shanghai branch of the China Banking Regulatory
Commission, the country's banking regulator, has issued a notice
telling banks to actively implement policies on renewing loans
for small firms, according to the sources.
Chinese banks' non-performing loans are already at nearly 2
percent, the highest since the global financial crisis in 2009,
according to the China Banking Regulatory Commission (CBRC).
The sources, who declined to be identified, said banks must
refrain from raising the threshold for small firms when they ask
for renewing loans, and should increase their tolerance for bad
Banks needed to establish systems to check credit made to
small businesses on a annual basis and conduct investigations
into firms before renewing their loans, the sources said.
Officials at the banking regulator in Shanghai were not
immediately available for comment.
(Reporting by China Newsroom; Writing by Kevin Yao; Editing by