CBRC tells banks to protect depositors

China is urging banking regulators at various levels to make banks strengthen their management of creditors' rights in order to stop steel and coal companies from dodging payment of debts.

During the process of capacity reduction in the steel and coal industries, some companies are using the opportunity to dodge debts through bankruptcy or by selling or transferring assets, said the China Banking Regulatory Commission in a guideline published on its website on Friday.

The CBRC, along with the National Development and Reform Commission and the Ministry of Industry and Information Technology, said banks should stop providing lending and settlement services to those companies that refuse to correct their behavior. Banks should post information about defaults by these companies on the national credit information sharing platform, so that all banks can carry out punishment jointly.