CHINA
<i> Times Staff and Wire Reports</i>
New Bank Law Detailed: The nation’s first commercial bank law won’t free state banks from government orders to make loans to loss-making state enterprises, an official said. The Commercial Bank Law, effective July 1, allows the Cabinet to order banks to make unprofitable loans as long as the government compensates them. A third of China’s state enterprises lose money, largely because 20% of their more than 100 million workers are surplus. Loans from five major state banks keep such enterprises alive.
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