Lending withers as banks thirst
By Feng Jianmin |
October 15, 2011, Saturday
|
Print Edition
Print Edition
BANK lending in September dropped to its lowest level in 21 months as the effects of tight monetary policies continued to leave banks short of the capital needed to make loans.
Banks in China issued 470 billion yuan (US$73.8 billion) of new loans, 113.1 billion yuan less than a year earlier and 78.5 billion yuan lower than August, the People's Bank of China said yesterday.
Lending was at its lowest since January last year.
The bank said new loans in the first nine months of this year totaled 5.68 trillion yuan, nearly 600 billion yuan less than the same period of last year.
The Bank of Communications said: "Lending usually grows month on month from July to September. The unnatural drop in volume last month indicates monetary policies are still tight and banks are less willing to lend and less capable."
The bank said monetary policies will remain tight for the rest of the year and the annual lending figure will hit 7.3 trillion yuan.
It said that despite the uncertain economic outlook, lending to sectors such as agriculture, small enterprises and affordable home project is likely to rise.
The central bank also said year-on-year growth of M2, the broadest measure of money supply, slowed to a decade-low of 13 percent in September, 0.5 percentage point less than the previous month.
Growth was short of the target of 16 percent set by the central bank earlier this year.
Banks in China issued 470 billion yuan (US$73.8 billion) of new loans, 113.1 billion yuan less than a year earlier and 78.5 billion yuan lower than August, the People's Bank of China said yesterday.
Lending was at its lowest since January last year.
The bank said new loans in the first nine months of this year totaled 5.68 trillion yuan, nearly 600 billion yuan less than the same period of last year.
The Bank of Communications said: "Lending usually grows month on month from July to September. The unnatural drop in volume last month indicates monetary policies are still tight and banks are less willing to lend and less capable."
The bank said monetary policies will remain tight for the rest of the year and the annual lending figure will hit 7.3 trillion yuan.
It said that despite the uncertain economic outlook, lending to sectors such as agriculture, small enterprises and affordable home project is likely to rise.
The central bank also said year-on-year growth of M2, the broadest measure of money supply, slowed to a decade-low of 13 percent in September, 0.5 percentage point less than the previous month.
Growth was short of the target of 16 percent set by the central bank earlier this year.
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