Banking regulator to tighten loan rules

China announced plans to enact regulations forbidding banks from extending unsecured loans to parties affiliated with the banks including shareholders and bank management. Officials at the China Banking Regulatory Commission (CBRC) said the move was aimed at increasing supervision of state banks to decrease the issuance of new non-performing loans, which made up 17.8% of Chinese loans in 2003. CBRC officials said the rules are scheduled to come into effect on May 1.