Policy and commercial banks in China were asked Monday to provide syndicated loans for a single project or a company for amounts exceeding 3 billion yuan (375 million U.S. dollars).

Under the memorandum passed by the newly established Loan Syndications and Trading Association under the China Banking Association, the banks should give priority to syndicated medium and long-term loans when they consider grants of more than three billion yuan.

The association, which was set up Monday in Beijing, has more than 30 members, including policy banks, state-controlled commercial banks, such as the Industrial and Commercial Bank of China, the Bank of China, and the China Construction Bank, and other banks.

Zhao Lin, deputy director of the China Construction Bank, was elected Monday as the director of the commission.

Zhao said the commission was designed to promote cooperation within the banks and regulate their practices in granting syndicated loans.

The commission will formulate rules for syndicated loans and trading and produce demonstration documents for businesses in a bid to reduce trading costs.

Syndicated loans first emerged in China in the 1980s.

Source: Xinhua