China Banking Regulatory Commission (CBRC) chairman Liu Mingkang said commercial lenders must reassess their risk exposure and submit reports by end-June, Bloomberg reported. Inspectors will visit banks to check on the reports. "By the end of the third quarter we will downgrade assets if needed and increase provisions," Liu said. The CBRC has repeatedly called for mainland banks to be more cautious in issuing new loans as fears of asset bubbles continue to grow – property prices rose 10.7% in February, the fastest pace in two years.
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