CBRC to curb excessive lending growth

China's banking regulator set the country's credit supply target for 2010 at around 7.5 trillion yuan. The China Banking Regulatory Commission says, China witnessed fast lending growth at the beginning of the year. But the commission promises the trend will ease.

Speaking at the Asian Financial Forum in Hong Kong, Liu Ming Kang, Chairman of the China Banking Regulatory Commission, says China would continue to control the pace and amount of credit supply this year.

CBRC chairman Liu Mingkang said, "By such a doing, we broaden our toolbox and get focused on risk base supervision with a clear road map and the banks will be better to absorb both the expected and unexpected losses. We think we are balanced in the two stories. Limiting systemic risk, by a brand new framework, and the building a banking system that fulfills its role in the Chinese economy."

The head of the CBRC says, the country will also step up the monitoring of banks as it tries to prevent speculative bubbles in real estate and other assets, while keeping the country's economic recovery on track.

IMF managing director Dominique Strauss-Kahn said, "Our forecast for Asian economies excluding Japan will be over seven percent for next year, which is really something that nobody expected six months ago. The bad news that all assets are fragile, very fragile, especially in advanced economies. The US, the European Union, Japan are feeling in a situation which is not really what I would call in good shape."

Also at the forum, the head of the IMF says, developing Asian economies are leading a global recovery that was faster and stronger than expected. But he warns against rushing money into emerging markets because they could lead to bubbles.