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China Bank Regulator: Focus On Local Government Finance Loans

China is paying a great attention to local government financing loans, a senior official of the China Banking Regulatory Commission said Monday, warning of the risk to the financial sector of the spread of debt problems, as with the Greek sovereign crisis.

China has urged local bank regulators and financing institutions to rein in loan growth this year to local government financing vehicles, with only the central headquarters of Chinese banks having the authority to approve such loans.

Read the complete Wall Street Journal story, "China Bank Regulator: Focus On Local Government Finance Loans."

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