China’s leading commercial bank will reduce or...

China’s leading commercial bank will reduce or stop loans to poorly run enterprises in 1988 to force them to perform better and to tighten the nation’s money supply. Fu Jikun, spokesman for Industrial and Commercial Bank of China, was quoted by the China Daily as saying that the bank will curtail loans to 15% of the 700,000 enterprises under its financial wing. Fu said the bank has given loans in recent years to every enterprise regardless of its financial situation. Inefficient businesses that have large inventories or are running at a loss will face cutbacks in financial support, he said.