Bank lending could top $1t in 2010

Chinese banks could issue up to US$1 trillion in new loans in 2010, state media reported. China Business News also revealed on Monday that lending in 2009 could amount to more than US$1.4 trillion, and that Beijing will require large banks to increase their ratio of capital to risk from 8% to 11%, while smaller banks will be required to raise their capital adequacy ratios to 10%. The Political Bureau of the Communist Party’s Central Committee agreed last week to continue current macroeconomic policies in 2010, despite fears of overcapacity and asset bubbles.