Chinese bank loans up to $170b in August as stimulus kicks in

Household loans hit $92.25b.

Reuters reports that Chinese banks extended $170b (CNY1.21t) in new loans in August as lenders responded to Beijing's call to intensify lending in support of the slowing economy.

Household loans, mostly mortgages, rose to $92.25b (CNY653.8b) in August from $72.13b (CNY511.2b) in July, whilst corporate loans hit $91.90b (CNY651.3b).

Also read: Banks in China urged to ramp up lending to rural businesses

Broad M2 money supply in August grew 8.2% from a year earlier. Outstanding yuan loans also grew 12.4% from a year earlier - in line with expectations but slower than July’s 12.6%.

The central bank has been calling on banks to ramp up lending to cash-strapped firms specifically the smaller and private companies that have been the hardest hit by the slowing economy and deleveraging campaign. The China Banking and Insurance Regulatory Commission (CBIRC) aims to have new loans to POEs account for over a third of total new corporate loans for large commercial banks and more than two-thirds for medium-sized and commercial banks.

Here's more from Reuters:

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