China's banking regulatory agency is warning banks against issuing risky loans, saying they must step up their risk management practices.

The China Banking Regulatory Commission and the Ministry of Finance jointly released the announcement on Sunday. The statement also says banks and financial organizations must further increase their level of support for economic development, and increase their financial and risk management.

It also advises financial institutions to raise their ability to deal with risk. And also do their part in promoting stable and relatively fast economic development. The regulatory agency also says banks should be cautious when it come to acquisitions.

(CCTV June 1, 2009)