Chinese Banks to Curb Lending to High Energy Consuming Sectors

The central bank in China has asked Chinese banks to rein in lending to high energy consuming industries, a move which echoes the government's energy-saving measures.

According to a circular issued today, by the People's Bank of China, banks must now strictly review loan applications from companies in heavy energy-consuming industries,. Now only bank headquarters can extend loans to finance expansion projects for energy-guzzling sectors.

The Xinhua news agency reported that new credit has been banned to any projects not complying with the government’s energy-saving policies.

Banks have to conduct an overall review of loans to energy-intensive industries and report results to the central bank by the end of June, 2010.

In May 2010, The State Council in China, asked all government departments to begin to cut emissions and conserve energy to meet the country's target set in the Five-Year Plan (2006-2010). 

 

Photo by Yongxinge

Wednesday 2nd June 2010


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