BEIJING: China's banking watchdog has ordered rural financial firms to strictly control lending to local government financing vehicles (LGFVs) and cut exposure to shadow banking assets, in the latest move to strengthen risk controls in the sector.
The China Banking Regulatory Commission (CBRC) told medium-to-smaller financial institutions in rurals area to particularly cut back loans to LGFVs at county level or below, according to an official circular dated March 8 and obtained by Reuters.
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