China Calls For Banks To Moderate Their Lending

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China Calls For Banks To Moderate Their Lending [news.bbc.co.uk]

Chinese Premier Wen Jiabao recently urged banks to curb lending, saying they needed to be "more balanced".

China is concerned about inflation and potential asset bubbles - in stocks and property - forming in its booming economy.

The People's Bank of China also raised the interest rate on its one-year Treasury bills, another move designed to remove money from the system.

The central bank has issued a series of calls recently to banks to moderate their lending.

This is a good thing to avoid the problems the western banks got themselves into, but not so good if you're starting a business. On the other hand, they are only targeting 8% growth for 2010.

[bill]

China has been on the cusp of a bubble for quite some time now. Even with the world's economy in the gutter they have continued to post positive numbers. Some restraint on their side has been called for by other nations. I wonder if this will be the beginning of that process.