Search

NEWS
LENDING & CREDIT | Staff Reporter, China
Published: 13 Apr 12
1079 views


Chinese banks intensify lending

Chinese banks lent a record US$160 billion in March in a bid to boost China’s faltering economy.

The amount is the largest monthly extension of credit since January 2011 when new loans hit US$159 million. The spike in lending also showed a stronger-than-expected growth in money supply, making an interest rate cut unlikely since China can ease monetary policy by simply loosening credit controls.

Economists had expected banks to loan US$127 billion in March. Outstanding loans at the end of March came to US$9.08 trillion, an increase of 15.7% from a year earlier.

The March jump boosted overall lending to US$390 billion in the first quarter, higher than the quarterly target of US$380 billion and above the US$349 billion posted in the same period last year.

M2 money supply rose to a three-month high of 13.4% in March from a year earlier, higher than forecasts for 12.9% growth.

"The new loans number is very strong. It signals that loan demand has rebounded and shows that the economy is turning," said Zhang Zhiwei, an economist at Nomura in Hong Kong.

"This is another signal that reinforces our view that the first quarter is the bottom of the cycle and that momentum is picking up."

Read more here.



Sign up for our newsletter

 

Do you know more about this story? Contact us anonymously through this link.

Click here to learn about advertising, content sponsorship, events & rountables, custom media solutions, whitepaper writing, sales leads or eDM opportunities with us.

To get a media kit and information on advertising or sponsoring click here.

Tags: loans, banks, China

PRINT ISSUE »

Subscribe Now
China moves from WMPs to AMPs

62 views

The yin and yang of Qianhai

41 views

Malaysian SMEs snub hedging products

46 views

MOST READ EXCLUSIVES

Hong Kong’s 10 Most Expensive Credit Cards

Hong Kong’s 10 Most Expensive Credit Cards

It’s all about exclusivity.

by STAFF REPORTER
24 Jul 2014 | 9109 views
 

Check out HSBC’s high-tech flagship branch at Orchard Road

Check out HSBC’s high-tech flagship branch at Orchard Road

It’s digital hub is a star attraction.

by KRISANA GALLEZO
23 Jul 2014 | 4476 views

DBS added 1000 more staff in 2013

DBS added 1000 more staff in 2013

It topples UOB to become Singapore's second largest commercial bank.

by KRISANA GALLEZO
22 Jul 2014 | 1823 views
 

Banks eye ubiquity in a paperless future

Banks eye ubiquity in a paperless future

Financial institutions scrambling to get more flexible.

by STAFF REPORTER
24 Jul 2014 | 274 views
close Don't Show Again

STAY INFORMED! Get our free weekly newsletter