Related News

Home » Business » Finance

Banks busy handing out loans

BANKS in Shanghai have lent more money in the first five months of this year than the whole of last year, and will now slow lending to shore up provisions against inflation and bad assets, the local banking regulator said.

Shanghai banks lent 249.3 billion yuan (US$36.5 billion) in the first five months, the Shanghai Bureau of the China Banking Regulatory Commission said yesterday in a statement.

"Banks in Shanghai are slowing their credit issuance to reasonable levels amid concerns of a new round of inflation and rising bad loans," the local banking regulator said.

Banks in China have already lent 5.84 trillion yuan this year - beyond the minimum of 5 trillion yuan in new credit the government called for this year. The credit boom has brought back worries about the rebound from mounting bad assets in the 1990s and possible inflation.

Outstanding loans in Shanghai stood at 2.66 trillion yuan at the end of May, 36.1 billion yuan more than a month ago.

Banks are increasing their provision against bad loans in Shanghai despite the decreasing bad loan ratio and value.

Banks in Shanghai boosted their provision to 116.98 percent at the end of May, up 3.54 percentage points from a month ago.

The higher provision increases protection from future writedowns.

Bad loans in Shanghai were cut by 1.32 billion yuan from the previous month to 39.35 billion yuan at the end of May. The non-performing loan ratio inched down 0.07 percentage points to 1.48 percent.

Individual mortgages kept rising in May amid the recovering property market. New individual mortgages for new Shanghai homes topped 3.96 billion yuan in May - a monthly record - taking the May total of new individual mortgages to 7.93 billion yuan.


Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend