It was lower compared to the $180b worth of new loans expected by analysts.
Chinese banks extended a total of $170.7b (RMB1.18t) worth of loans in May, a 15% increase from $150b (RMB1.02t) worth of loans in April, according to data from the People’s Bank of China (PBoC). However, it still came up short to the $180b (RMB1.225t) new loans expected by analysts.
Growth of outstanding total social financing (TSF), a broad measure of credit and liquidity in the economy, quickened to 10.6% in May from a year earlier from 10.4% in April.
“May credit data showed some improvement due to policy support,” Luo Yunfeng, an analyst at Merchants Securities in Beijing told Reuters. “Further policy easing may be needed if trade frictions between China and the United States have a big impact on the economy."
The PBOC has stepped up efforts to boost loan growth and business activity in May through a three-phase cut in regional banks’ reserve requirements to reduce financing costs for small and private companies. The PBOC said that it will help reduce borrowing costs for companies, especially small firms, as part of a wider effort to support the world’s second-largest economy amidst a trade war with the United States.
Here’s more from Reuters.
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