BEIJING - Chinese regulators are stepping up scrutiny of bank lending to
enforce rules meant to deny credit to companies that violate energy efficiency
and pollution standards, the government said Friday.
The probe will focus on such energy-intensive industries as power generation,
steel, coal, coke and electrolytic aluminum, the China Banking Regulatory
Commission said in a written statement.
The announcement comes amid a government campaign to improve energy
efficiency and rein in environmental damage from China's 28-year-old economic
boom. Measures have included repealing rebates of value-added taxes for exports
considered dirty or energy-intensive.
The government announced last week that violators of energy or pollution
standards would be denied bank credit.
Financial institutions also are ordered to withdraw loans to companies deemed
to be running obsolete equipment and causing too much pollution, the agency
Banks are expected to increase their own scrutiny of lending to polluting and
energy-intensive industry, the agency said.