China's central bank told commercial banks that they will be penalized for uneven lending next year, Dow Jones reported. A central bank memo to China's policy banks and major commercial banks ordered them to control lending each quarter and threatened them with punishment if they did not comply. "Next year is a special year with the change in government and the Beijing Olympic Games. If loans get out of control, that could lead to harsh macro controls and the biggest losers would be commercial banks," the memo said. Banks have been told in the past how much they can lend each quarter. If banks exceed those allocations, they are required to set aside funds in central bank bills or special deposits.
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