Regulator urges banks to be cautious in lending

Chinese banking regulators reiterated yesterday that banks should carefully control credit risks while extending loans to support economic growth.

Credit concentration in certain industries, regions or businesses could make banks more vulnerable to macroeconomic swings and corporate operational cycles, Wang Huaqing, disciplinary secretary of the China Banking Regulatory Commission (CBRC) said in a statement.

"Such concentration may possibly incur systematic risks in the banking sector," he said.