China’s banking watchdog said it will review all loans offered or loan commitments to fixed asset projects either under construction or still on paper in an effort to curb blind investment and
cool the overheating economy.
A senior official with the China Banking Regulatory Commission said the review involves all banking institutions, including the state-owned banks, shareholding commercial and agricultural banks, and
rural credit unions and trust and investment companies.
The official said banks will be ordered to suspend loan issuance if loans or loan commitments are found for projects banned by the central government, or projects that violate laws concerning land, and to recall those loans issued.