Banks' new yuan loans decline in April
By Feng Jianmin |
May 12, 2012, Saturday
|
Print Edition
Print Edition
COMMERCIAL banks in China extended fewer new yuan loans in April, raising further concerns over a slower economic growth.
Bank loans fell 61.2 billion yuan from a year earlier to 681.8 billion yuan (US$108.2 billion) in April, the People's Bank of China said in a statement yesterday. The figure slightly missed analysts' expectations of 700 billion yuan, and compared with a 14-month high of 1.01 trillion yuan in March.
"One reason for the decline is weaker demand for loans amid an economic slowdown," said E Yongjian, an economist with the Bank of Communications. "The drop in deposits has also limited banks' capacity to lend."
Yuan deposits fell 465.6 billion yuan in April, against a 342.4 billion yuan rise a year earlier.
E said that given long-term loans were less than short-term lending, companies have not yet raised their profit outlook.
He added that China may cut bank reserve requirement ratio between one and three times this year.
The PBOC also said China's M2, the broadest measure of money supply, grew by 12.8 percent on an annual basis in April, compared with 13.4 percent in March. The growth fell short of the central bank's annual target of 14 percent set earlier this year.
Bank loans fell 61.2 billion yuan from a year earlier to 681.8 billion yuan (US$108.2 billion) in April, the People's Bank of China said in a statement yesterday. The figure slightly missed analysts' expectations of 700 billion yuan, and compared with a 14-month high of 1.01 trillion yuan in March.
"One reason for the decline is weaker demand for loans amid an economic slowdown," said E Yongjian, an economist with the Bank of Communications. "The drop in deposits has also limited banks' capacity to lend."
Yuan deposits fell 465.6 billion yuan in April, against a 342.4 billion yuan rise a year earlier.
E said that given long-term loans were less than short-term lending, companies have not yet raised their profit outlook.
He added that China may cut bank reserve requirement ratio between one and three times this year.
The PBOC also said China's M2, the broadest measure of money supply, grew by 12.8 percent on an annual basis in April, compared with 13.4 percent in March. The growth fell short of the central bank's annual target of 14 percent set earlier this year.
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