CBRC cautions on surging consumer loans

China's top banking regulator on Friday warned surging consumer loans may pose potential risks to the country's lending system.

It also cautioned against a fast rise in consumer leverage ratio.

"Banking regulators encourage banks to develop consumer finance but the business must be operated according to high standards," said Xiao Yuanqi, chief of the Prudential Regulation Bureau of the China Banking Regulatory Commission, at a news conference.