CBRC orders curbs on banks' loan activity

The China Banking Regulatory Commission has blocked banks' lending to other financial institutions such as lending companies, pawnshops, guarantee companies and private financing activities amid a cash crunch.

The CBRC has issued a directive to its local bureaus and commercial lenders, ordering banks to include external risks related to such financial institutions in their risk management system, the Shanghai Securities News reported on Thursday.

The document ordered headquarters of banks to establish unified standards and branches to make a list of specific institutions that are qualified for cooperation, said the newspaper, citing anonymous sources.