The Shanghai branch of China’s central bank is asking city lenders for information on asset quality, credit needs and potential risks on top of what all Chinese banks are preparing for a routine assessment, two people with direct knowledge of the matter said on Wednesday.
Banks in Shanghai recently received a notice from the People’s Bank of China (PBOC) asking them to provide the current size and industry distribution of their loan portfolio and report on how new loans in 2017’s first half compared to a year earlier, the two people said.
The Shanghai office of the PBOC also requested information on any impact the increased regulatory scrutiny has had on new loans, off-balance-sheet assets and the movement of assets from off-balance-sheet to on-balance-sheet, they added.