The lending quota imposed on these banks will be removed and they will gradually adopt the basic asset and liability ratios and risk management techniques for managing their balance sheets. With reference to internal practices and in consideration of the country circumstances, we will improve the existing system for asset classification and loan loss provisioning.
Efforts will be made to improve the system for capital replenishment in order to increase capital adequacy of financial institutions. In maintaining the order in financial industry, we shall follow the principle of segregating commercial banking from securities and trust businesses and close all unlicensed financial institutions.