Broader financing channels for banks
By Zhang Fengming |
April 29, 2010, Thursday
|
Print Edition
Print Edition
CHINA will diversify financial channels for banks which have to replenish capital this year after a surge in lending in 2009 so that pressure on the market can be eased, the central bank said.
Major banks in China moved closer to the minimum capital adequacy ratio requirement as they embarked an aggressive lending spree in 2009 and they are now in need to replenish capital this year, the People's Bank of China said yesterday in an annual financial market report on its Website.
Banks in China are expected to lend 7.5 trillion yuan (US$1.1 trillion) in new credit this year after a record lending of 9.6 trillion yuan in 2009.
The PBOC said it expects the scale of capital raised in the financial market to expand this year amid a diversified capital raising mode.
China encourages consumer credit and small business credit but restricts loans to new projects and high-emission or high-consumption industries as it bids to improve the credit structure, the PBOC noted.
China also will encourage the development of private financial industries such as private equities as well as private capital to boost investment in infrastructure.
The country will also expand the trial of cross-border trade yuan settlement.
The PBOC warned that the financial and fiscal situation may face higher potential risks this year and it would be advisable to err on the side of caution.
Major banks in China moved closer to the minimum capital adequacy ratio requirement as they embarked an aggressive lending spree in 2009 and they are now in need to replenish capital this year, the People's Bank of China said yesterday in an annual financial market report on its Website.
Banks in China are expected to lend 7.5 trillion yuan (US$1.1 trillion) in new credit this year after a record lending of 9.6 trillion yuan in 2009.
The PBOC said it expects the scale of capital raised in the financial market to expand this year amid a diversified capital raising mode.
China encourages consumer credit and small business credit but restricts loans to new projects and high-emission or high-consumption industries as it bids to improve the credit structure, the PBOC noted.
China also will encourage the development of private financial industries such as private equities as well as private capital to boost investment in infrastructure.
The country will also expand the trial of cross-border trade yuan settlement.
The PBOC warned that the financial and fiscal situation may face higher potential risks this year and it would be advisable to err on the side of caution.
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