Its first responsibility, to finance the transition from centrally planned to market economies, threatens to work against its "sound banking" rule that loans must be commercial.
As a general rule, paying loans off as early as possible is a good idea because it allows you to avoid interest payments which, over the normal life of the loan, can seriously add up.
A few countries, notably the United States, have established special rules regulating loans to consumers.
Contrary to a major league rule, the loan was not disclosed to and approved by the other owners.
The cabinet secretary rather than the prime minister should recommend honours; donations should be capped; the rules on loans should be reviewed; and parties should receive more state funding.
Its banks are subject to pretty stringent rules: their loans cannot exceed 75% of their deposits, and, unlike many countries, China is already implementing the global prescriptions on bank capital known as Basel 3.
But the government has shied away from the political fight that would be needed to change the rules.Subsidised loans to favoured businesses by the country's development bank, BNDES, are another obstacle.
Moreover, restructuring would stop speculation against the euro, whose intrinsic solidity need not be affected by one member country's bankruptcy, as long as the European Central Bank does not break its own rules regarding loans backed by junk bonds.
And lobbyists have been highlighting the large number of poor and minority students at for-profits, who they claim will suffer most if the gainful employment rule cuts loan eligibility.
Without the new banking rules, bad loans would have dropped 11percentt, as Korea's rapid economic recovery enabled more borrowers to pay interest and repay debt, the Financial Supervisory Commission said.
The number of mortgages taken out to fund house purchases increased in June, according to figures from lenders which suggest that new rules on loans have not dampened the property market.
