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Banking regulator urges cross-border regulation

(Xinhua)
Updated: 2010-04-11 19:16

BOAO, Hainan - China Banking Regulatory Commission (CBRC) Chairman Liu Mingkang Sunday urged countries to boost cross-border financial regulation to prevent future crisis.

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China's banking system remained sound out of the global financial crisis due to prudent and effective risk control, Liu told a forum at the Boao Forum for Asia annual conference in south China's island province of Hainan.

He said that it is important for the financial system to return to fundamentals and properly control leverage.

All Chinese banks have been ordered to report to the CBRC their risk exposure to lending projects by the end of June. The CBRC will sent out a team in the third quarter to check up the truthfulness of the reports, Liu said.

The regulator will also boost supervision over banks lending in the property sector by checking the borrowers' credit conditions and banning developers from using land as guarantee, he stated.

The banks should markedly raise down payment requirements and also lending rates if they are not certain of the risks involved in some mortgage loans, he said.