Commercial Banks Stop Providing Loans to Local Financing Platforms

By China Securities Journal
Published: 2010-10-21

Many commercial banks have begun to stop issuing loans to local financing platforms after receiving instructions from their supervisory body to cease lending to the institutions. This policy is especially targeted at financing platforms that have been used by local governments to fund public works that don't generate any profit and will mainly rely on local government revenue to be paid off.

 

Source
China Securities Journal


Google translation