The People's Bank of China has made its first comments about last week's credit crunch, saying...

|By:, SA News Editor

The People's Bank of China has made its first comments about last week's credit crunch, saying that liquidity in the banking system is "overall at a reasonable level." The PBOC called on financial firms to improve their "awareness about preventing risks" and to "strengthen their analysis and forecasting about factors affecting liquidity." In a move seen as an attempt to rein in record lending, the bank last week let inter-bank funding rates hit record highs before stepping in to ease the pressure.