China cbank chief: to guide financial firms to keep reasonable lending policies

SHANGHAI, June 28 Thu Jun 27, 2013 10:32pm EDT

SHANGHAI, June 28 (Reuters) - China's central bank will guide financial institutions to maintain reasonable lending policies, its chief said on Friday.

Zhou Xiaochuan also told a financial forum in Shanghai that the People's Bank of China will adjust market liquidity in an appropriate manner.

Last week, PBOC allowed money market conditions to tighten and rates to soar to historic levels.

It later moved to quell fears the squeeze could spin out of control into a full-blown financial crisis, but made it clear that cash conditions were being tightened and lenders should improve money management and lending practices.