International Law

Rumor: China Banking Regulators Tell Local Banks Not to Lend to U.S. Banks

The China Banking Regulatory Commission (CBRC) has denied a report that it instructed local banks to halt interbank lending to U.S. banks.

"The CBRC has never, through any channel, issued a statement or told domestic commercial banks not to lend to or borrow from U.S. financial institutions," the China Banking Regulatory Commission said in a statement on its website.

CBRC Vice Chairman Wang Zhaoxing told Reuters that a report in the South China Morning Post, which said the agency had told Chinese banks to stop lending to U.S. banks in the interbank market, was not correct.

"If they are not willing to lend, this is the normal practice of risk control," said Wang, speaking on the sidelines of a major banking conference.

The SCMP report is here (paid subscription required).

Full post as published by Asia Business Intelligence on September 25, 2008 (boomark / email).