The China Banking Regulatory Commission has not indicated how much that might cost or whether banks would be eligible for government aid to make up for any losses.

The International Herald Tribune reports that the  state-owned Agricultural Bank of China, the country’s main rural lender, says it expects borrowers to default on six billion yuan (US$850 million) in loans.

“For borrowers who have suffered a great loss in the earthquake and had no insurance, or if they have insurance but still cannot repay their debts, their borrowing should be counted as bad loans and the banks should cancel them,” the bank agency’s announcement said.

http://news.bbc.co.uk

http://www.iht.com/