Lessons in lending

Lending losses in China highlight the need to improve credit, fraud and money-laundering risk management, which are receiving increasing attention from regulators, says Rohan Bedi

While banks and regulators in China are making moves to fight corruption and fraud in the country's financial markets, it is a slow and difficult process. Some changes have been made - the bankruptcy law passed in August is one example - but the widespread nature of the problem means improvements will not happen overnight.

China is the world's second largest bad loan market after Japan - in 2005, rating agency Standard & Poor's estimated that there was around $700 billion in bad loans in the