Financial firms less dependent on banking credit

Continue to turn to shadow banking for funds.

The China Banking Regulatory Commission, the financial services regulator, noted that companies were less dependent on banking credit when seeking financing. It noted the growth of both total assets and liabilities of financial institutions in China's banking sector slowed in 2012 from the previous year.

CBRC said combined assets grew by 17.7% year-on-year in December to US$21 trillion, down from the 18.3% growth in December 2011. Total liabilities rose 17.5% year-on-year in December to US$19.7 trillion, down from 18& growth in December 2011.

Analysts said the slowdown of the economy last year caused a drop in corporate financing. The total assets and liabilities of these financial institutions that provide financing for companies declined accordingly.

The decline also indicated that the structure of social financing changed in 2012 and that companies were less dependent on banking credit while seeking financing channels.

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