China central bank warns on lending to polluters

China's central bank chief has warned banks over the risks of lending to heavy polluters, saying the government's tougher stance towards such firms would lower their creditworthiness, Reuters reported on Tuesday.
Beijing recently introduced a slew of tightening policies, reports said, including raising taxes on sectors that consume large amounts of energy and emit large amounts of pollution.
Such industries will face even harsher policies in the future given that the State Council has put energy efficiency at the top of its agenda, Zhou Xiaochuan, governor of the People’s Bank of China, said in an article published on the central bank’s website.
"Financial institutions should have a sense of policy risks in dealing with corporate clients and be on high alert towards firms that consume much energy, pollute a lot and create many emissions so as to improve the quality of their loans," Zhou wrote.