Bank lending may have declined in April

Credit extended by China’s banks in April may have dropped to US$87.85 billion after staying at above US$146.66 billion for three straight months, state media reported, citing industry insiders. The scale and growth of April new loans was “more reasonable” than in the first three months this year, said the China Securities Journal, citing unidentified sources with banks. New renminbi-denominated loans hit US$670 billion in the first quarter, according to the People’s Bank of China. In March alone, new credit loans increased by US$277.19 billion. The country’s “Big Four” state-owned commercial banks are estimated to have lent more than US$36.67 billion in April, while smaller banks have lent about US$58.66 billion, said sources. Medium- and long-term loans would have accounted for a larger proportion of the April new loans, while the scale of bill financing would fall sharply, said analysts.