BANKING regulators in Shanghai urged commercial banks to follow the tight monetary policy and combine the cap on lending with support for the economy.

Banks are also being asked to keep a careful watch on the external economy changes and strengthen their management of property lending, the Shanghai headquarters of the People's Bank of China said yesterday.

Shanghai banks accounted for nine percent of the nationwide industry's assets while their profits contributed to 15.2 percent of the industry's total, the Shanghai bureau of the China Banking Regulatory Commission said.