International Monetary Fund cautions Chinese Banks

The International Monetary Fund is worried about the risk attached to bank loans issued by Chinese banks. The IMF is concerned about the fact that there is little regulation and supervision vigilance overseeing the huge liability of 9600 Billion Yuan which has been given in loans.

They are also concerned with having more transparency in lending to local governments. As per the Chinese officials, there is a legitimate concern for default on more than 20% of loans given to local governments in China.