Changing China
Giant on the move
from LEGACY Reuters Summits:
Lessons from children, old ladies
China's banking system could take a cue from children and
neighborhood social groups to strengthen lending rules and
ensure that credit flows to where it is needed most.
The country's banks lent a whopping record 7.37 trillion yuan
($1.08 trillion) in the first half of the year, but regulators
worry that a significant portion is not flowing into the real
economy and smaller firms where funds are needed the most.
"If you give children money without strings attached, they
won't value it," Yang Zaiping, the executive vice president of
the China Banking Association, said at the Reuters China Investment
Summit.
Yang was making a point about firming up banks' credit policy
to ensure that borrowers understand the importance of maintaining
their credit-worthiness.
