China will continue its prudent monetary policy and strengthen financial support to economic growth this year in order to avert possible credit squeeze, said Dai Xianglong, governor of the People's Bank of China, the central bank.
He told a press conference organized by the current on-going session of the National People's Congress Monday afternoon that the anticipated objectives of money and credit supply for 2002 are: Broad money (M2) and narrow money (M1) will both grow about 13 percent, cash in circulation (M0) will not be in excess of 150 billion yuan, and the loans to be provided by all financial institutions will increase by at least 1300 billion yuan.
He stressed the necessity to strengthen credit management in order to safeguard financial security and maintain long-term balance in central finance.
He called on commercial banks, especially those owned by the state, to handle correctly the relations between preventing financial risks and supporting economic development, enhance their sense of capital operations and improve their services.
(Xinhua News Agency March 11, 2002)