In face of a period of prolonged weak foreign demand, Chinese banks should adjust their credit portfolio to support the nation's industrial restructuring drive, Liu Mingkang, chairman of the China Banking Regulatory Commission, said on Tuesday.
China's export will "remain weak" for quite a long time and it is essential for the nation to develop a low-carbon economy and gradually phase out industries at the lower end of the value chain, the chairman told the 2009 China Financial Forum in Beijing.
"Chinese banks should explore ways to establish a long-term mechanism to support the sustainable development of the nation's low carbon industries, such as clean energy and environmental protection," Liu said.
However, the chairman noted that if there is no comprehensive policy support, such as tax breaks, commercial banks might face risks when lending to the emerging industries.
"It is critical to prevent and control the credit risk resulting from the process of industrial restructuring," Liu said.
