--Bank of China's exposure to "risky" local government financing vehicles "manageable."

--BOC: 90% of loans to local government financing vehicles are covered by cash flow.

--Offshore yuan deposits likely to more than double between 2012 and 2015.

(Recasts and combines two earlier stories.)

BEIJING (Dow Jones)--Bank of China Ltd. (03988.HK), said Wednesday its loans to local governments are manageable, with more than 90% covered by cash flow, playing down concerns that they pose a default risk.

The bank, one of China's big four state-run lenders, was the largest credit issuer ...