Regulator: Loan risks controllable

Banks have made adequate provisions for souring debt, says CBRC official

China can control the risks associated with lending to micro-sized and small companies amid the ongoing efforts to strengthen financial support to the sector, said a top official with the nation's banking regulator.

Zhou Mubing, vice-chairman of the China Banking Regulatory Commission, said at a news conference on Friday: "It is true that the nonperforming loan ratio for micro-sized and small companies is higher than the average NPL ratio for total loans in China, just like other countries ... But we believe that the financial risk can be controlled at present because our banks have adequate provisions for loan losses."