Regulatory requirements to tighten......>

CHINA PRESS: Regulatory requirements to tighten the recognition of

non-performing loans are unlikely to be full implemented in the short term,

particularly to small and medium sized banks, according to a commentary in the

Securities Times. The newspaper says the measure to tighten the recognition

period from the current 90 days to just 60 days would inevitably increase

operational pressure on the banks. Including loans overdue by more than 60 days

as NPLs is not an internationally accepted regulatory requirement, but this

indicates an intention by local regulators to strictly control asset quality and

deal with non-performing assets, the newspaper said.