Tighter controls set on local govt loans

Guarantees, limits and credit curbs imposed on construction projects

China's top banking regulator has ordered commercial banks to impose tighter controls on lending to local government financing vehicles after a strong rebound in new loans in March.

An official at the China Banking Regulatory Commission confirmed to China Daily on Monday that CBRC has issued a guideline to banks on April 9, prohibiting them from increasing the scale of loans made to such vehicles.