SHANGHAI -- Chinese authorities are slamming the brakes on bank lending, in one of their boldest attempts yet to curb the runaway investment that is threatening what is soon to be the world's third-largest economy.
In recent weeks, regulators in China have quietly ordered commercial banks to freeze lending through the end of this year, according to bankers in several cities. These bankers say that to comply, they are canceling loans and credit lines with businesses and individuals.
A China Banking Regulatory Commission official in Shanghai confirmed that local and Chinese subsidiaries of foreign banks have been requested to ensure that loans outstanding at year end don't exceed the levels on Oct. 31. The official described it as "guidance aimed at supporting the macrocontrol measures being implemented."
The blunt policy marks one of China's more desperate attempts yet to choke the feverish investment that is putting the world's fastest growing major economy at risk of overheating.
In recent weeks, regulators in China have quietly ordered commercial banks to freeze lending through the end of this year, according to bankers in several cities. These bankers say that to comply, they are canceling loans and credit lines with businesses and individuals.
A China Banking Regulatory Commission official in Shanghai confirmed that local and Chinese subsidiaries of foreign banks have been requested to ensure that loans outstanding at year end don't exceed the levels on Oct. 31. The official described it as "guidance aimed at supporting the macrocontrol measures being implemented."
The blunt policy marks one of China's more desperate attempts yet to choke the feverish investment that is putting the world's fastest growing major economy at risk of overheating.
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