Doubts remain over legality of M&A lending
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clpstaff &clp articlesInconsistency" between CBRC guidelines and earlier PBOC regulations
The banking regulator's new guidelines allowing banks to lend for M&A transactions may not be enough to open the doors to such financing, according to one lawyer.
As reported by China Law & Practice in December 2008, the issuance of the Guidelines on Risk Management of Acquisition Loans of Commercial Banks by the China Banking Regulatory Commission (CBRC) was a significant move, and one which was expected to pave the way to a new area of business for banks in China.
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