BEIJING: China's banking industry regulator called on banks to properly manage their liquidity conditions and head off shadow banking risks in 2014, setting the regulatory tone for the year ahead.

In a statement on Tuesday laying out the major tasks in 2014, the China Banking Regulatory Commission also required banks to prevent risks related to loans made to the property sector.

Banks must also ensure that there is no fresh increase in the outstanding loans to local government financing vehicles, the CBRC said in its statement on Tuesday.