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Report: Chinese regulator asks Shanghai banks to boost lending to small firms

China's banking regulator has asked banks in Shanghai to lend more to riskier small firms and increase their tolerance for bad loans, even as banks struggle with rising nonperforming loans, Reuters reported Dec. 28, citing two sources.

The Shanghai branch of the China Banking Regulatory Commission also asked banks to refrain from raising the threshold for small firms when they seek to renew their loans.

Officials at the CBRC's Shanghai office were not immediately available for comment, Reuters reported.