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Chinese banks must control pace of lending -Zhou

Published 01/04/2010, 07:35 PM
Updated 01/04/2010, 07:39 PM

BEIJING, Jan 5 (Reuters) - Chinese banks must avoid big swings in lending and pay attention to growing credit risks after a surge in loans last year and amid industrial overcapacity, China's central bank governor Zhou Xiaochuan said in comments seen on Tuesday.

He also said that maintaining low inflation was an objective of Chinese monetary policy, along with supporting high growth, high employment and balanced international payments. The experience of the international financial crisis showed that it is not enough to simply focus on inflation, Zhou said.

His comments were made in an interview with China Finance, a magazine published by the People's Bank of China, and appeared on its website (www.cnfinance.cn)

(Reporting by Aileen Wang and Simon Rabinovitch; Editing by Jonathan Hopfner)

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