China's banking regulator urged commercial banks Sunday to implement the central government's macro-control measures after the economy boomed at an 11.1 percent clip in the first quarter of 2007.
In a statement on the website of the China Banking Regulatory Commission (CBRC), chairman Liu Mingkang urged commercial banks to be cautious in issuing credit and step up risk management.
"All commercial banks must ... scientifically handle the rate of issuing credit, improve the credit structure and raise the macro adjustment function of the banking industry," Liu said.
He also called on the banks to maintain capital adequacy ratios and lower their ratio of non-performing loans, while ensuring the credit-worthiness of new loans.
China's economic growth accelerated to 11.1 percent year-on-year in the first quarter of the year, stoking fears of overheating in an economy that has boomed on excessive liquidity and robust growth in fixed assets investment.
The government has also expressed fears of inflation with the consumer price index surging 3.3 percent in March, above the government-set inflation target of three percent for the year.
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