John At The Center

China punished some banks, including Bank of China, for lending too much, after a surge in new loans this year increased inflationary pressures, sources said on Wednesday citing central bank figures, Reuters reported.

The People’s Bank of China, the central bank, had also told other lenders, including Industrial & Commercial Bank of China, CITIC Bank and China Everbright Bank to increase their reserve requirement ratio by 0.5 percentage point.

via China Said to Punish Banks for Overlending – DealBook Blog – NYTimes.com.