(Bloomberg) -- Chinese banks, lacking information on
borrowings and seeking short-term profits, are struggling to
control loans from being illegally used for stock purchases, the
former chairman of Britain's Financial Services Authority said.
``When a company asks for a loan to replenish its working
capital, banks have a hard time figuring out whether it's telling
the truth,'' Sir Howard Davies said yesterday in an interview in
Beijing, where he and other overseas advisers met with the China
Banking Regulatory Commission.
Read more at Bloomberg Emerging Markets News
borrowings and seeking short-term profits, are struggling to
control loans from being illegally used for stock purchases, the
former chairman of Britain's Financial Services Authority said.
``When a company asks for a loan to replenish its working
capital, banks have a hard time figuring out whether it's telling
the truth,'' Sir Howard Davies said yesterday in an interview in
Beijing, where he and other overseas advisers met with the China
Banking Regulatory Commission.
Read more at Bloomberg Emerging Markets News
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