THE Chinese banking regulator yesterday urged financial institutions to step up their supervision in face of world economic turmoil.

The China Banking Regulatory Commission is requiring institutions in the banking industry to tighten up its credit management and avoid embezzlement of funds to the stock market. Control over property-related credit should be strengthened to encourage normal consumption, strike down on speculative activities and support the rational development of the real estate industry, said the commission. It also urged commercial banks to make better preparations for possible losses, asking them to increase provisions.