The China Banking Regulatory Commission said it has not told local banks to stop lending to U.S. banks. "If they are not willing to lend, this is the normal practice of risk control," Reuters quotes Wang Zhaoxing, CBRC Vice Chairman.
"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. The South China Morning Post has reported
that Chinese banks have received such instructions from the agency.
Wang Zhaoxing, CBRC Vice Chairman, said "if they are not willing to
lend, this is the normal practice of risk control." Reuters writes that
the CBRC has called the media report "irresponsible."
However, Reuters quotes unidentified dealers working for foreign financial institutions as saying that they are finding it harder to borrow money from Chinese banks since last week's financial meltdown.
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