Chinese financial institutions are expected to extend 8 trillion yuan of new loans in 2012, under relatively unchanged monetary policies, according to a Bank of China forecast.

The first half of 2012 will probably see at least two cuts in reserve requirement ratio for banks, the lender predicted, adding that chances for interest rate adjustments are slim.

The bank also saw murkiness in the real estate sector. Sales of houses are likely to plunge some 15 percent, bringing in risks for growth, commercial banks and local finance, the bank said in the report, citing lower growth, tight credit and continued regulatory policies in the sector.

Bank of China predicted full-year growth for 2011 would be 9.3 percent, and CPI at 5.4 percent. In 2012, the bank projected GDP at 8.8 percent and CPI at 3.5 percent.