• Add to Favorites
  • Subscribe
  • Friend us on Facebook
  • Follow Caijing on Twitter

New Lending by Big Four Banks Slowed Further in August: Report

08-13 18:09 Caijing
The big four banks extended merely 90 billion yuan in new loans in the first four days of August, compared with 170 billion in the same period of July.

Chinese banks have extended a decline in lending entering August, reflecting shrinking credit demand in the economy, Chinese media said.

The biggest four banks, the Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China and China Construction Bank, shoveled merely 90 billlion yuan in the first four days of August, reported by the Netease, citing sources.

That compared with an outflow of 170 billion of new loans in the period, and 170 billion of new loans extended in the same period of July.

The recent slowdown in lending was particularly notable in July. Lending in the month by the "big four banks", which usually account for 30 percent of new yuan loans issued by the whole banking system, hit the lowest level so far this year at around 200 billion.

Most of new loans in recent months, as usual, were to infrastructure and emerging industries, according to the report. That was in line with the government's policy support, announced intensively in July and August, to boost investment in infrastructure including railway and urban rail network.

Interest rates on loans charged by most banks remained unchanged due to slack credit demand, despite a central bank move to scrap controls on banks' lending floor in July, the report said.

The trend of deposit outflows-at 950 billion in July--- will continue weighing on banks' lending in the first half of the year, said Lian Ping, chief economist at the Bank of Communications.

Lian predicted new yuan loans in the full year will reach around 8.5-9 trillion yuan.

 

Editors’ Picks »