CBRC warns to keep close track of real estate loan risk

The CBRC has been controlling credit growth for the past year and closely following the risks of local financing platforms and real estate loans, the chairman of the CBRC said today in response to doubts about the rapid growth of external credit. In 2009, the new credit of 9.5 trillion yuan, the outside world called the amount of credit, Liu explained that the CBRC has been careful to control the scale of credit growth throughout the year. In fact, credit growth in the first quarter was the fastest, with a monthly increase of 1.52 trillion yuan.　　The CBRC promptly adopted prudential supervision measures, resulting in the three-quarter growth back to normal levels, that is, two per cent monthly average of 920 billion yuan, three quarter monthly, 430 billion yuan, four per cent monthly, and 2009 credit growth rate of 310 billion. In response to the potential risk, Mr Liu said measures had been taken in the first quarter of last year to follow closely the credit risks of loan issuance, including local financing platforms and real estate loans, and timely warnings to warn banks about the risks. The CBRC will check and monitor the information collected from more than 190 banks with large exposures.　　In the area of excessive concentration, credit card and Bill illegal operation, project capital substandard and misappropriation of loans for speculation, also took a timely corrective action. At present, the bank has set aside $1 trillion, he said, and is confident that it will deal with possible losses.