SIXTY-EIGHT Chinese and foreign banks in Shanghai signed a pact recently in a joint effort to fight debt evaders.
Banking experts feel that as the financial centre of China, Shanghai should emphasise more on co-operation among banks, especially in protecting banks' rights as creditors.
The pact passed at a banking trade conference in Shanghai makes detailed regulations on the fight against debt evasion and bad loans.
According to the pact, the banking trade union is responsible for the management of bad debts and protection of the banks' rights as creditors. All debt evasion should be reported to the union, which will make decisions on them.
The pact also stipulates that every member bank should record the information of its borrowers in the loan consultation system of the People's Bank of China.
The credit record of the borrowers would help other member banks avoid the risk of unpaid debts.
. About 46 foreign banks in Shanghai have responded favourably to the pact. - People's Daily