China's "Big Four" Banks Extend New Loans of CNY180B in December01-06 11:16 Caijing
China's biggest four banks extended 180 billion yuan of new loans in December, while new deposits attracted by the state-owned banks surged 1.2 trillion yuan in the same month, reported by the Shanghai Securities News.
Chinese banks traditionally tighten grips on new lending at the end of each quarter as they struggle to meet regulatory requirements and this December was no exception.
New loans given by the top four banks - Industrial and Commercial Bank of China, the Agricultural Bank of China, Bank of China and China Construction Bank - usually account for 30-40 percent of total lending.
The newspaper estimated that total new lending could hit around 600 billion yuan in December.
With money supply well above target, there is a good chance that banks are cautious in extending loans as planned, said Lu Zhengwei, chief economist with Industrial Bank. Chinese banks all together lent 8.4 trillion yuan in the first 11 months of this year, leaving 600 billion for December if they follow strictly of the full year target of 9 trillion yuan.
Bank of Communications analysts said in a report that despite relatively larger foreign exchange inflows, the money market was tighter than expected in December. The bank predicted new yuan loans at 580 billion yuan for December, down 45 billion from November.
Analysts are cautious about lending in 2014. The Bank of Communications expected banks' lending pace will slow from that in 2013, with new loans at 9.8-10 trillion yuan for the full year.
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