China Cuts Off U.S. Banks: No More Lending To Third World

China Flag

A Chinese regulatory body has instructed Chinese banks to stop lending to U.S. banks in a bid to insulate China from the deepening U.S. credit crisis. The decree comes from the China Banking Regulatory Commission (CBRC), according to the South China Morning Post. Reuters:

“The decree appears to be Beijing’s first attempt to erect defences against the deepening U.S. financial meltdown after the mainland’s major lenders reported billions of U.S. dollars in exposure to the credit crisis,” the SCMP said.

A spokesman for the CBRC had no immediate comment. (Reporting by Alan Wheatley and Langi Chiang; editing by Ken Wills)

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.