China’s Big Four banks extended more than RMB200 billion (US$30 billion) worth of new loans in September, which means that the total loans extended by China’s banking sector may exceed regulatory expectation, China Securities News reports.
According to the report, the strong credit expansion has made the People’s Bank of China decide to temporarily increase the deposit reserve ratio for, among others, China Merchants Bank and China Minsheng Bank, as these two lenders’ new loans last month accounted for 60% of the total credit extended by nine Chinese equity-holding banks.
China Knowledge reports that China has been stepping up efforts to curb credit expansion to cope with inflationary pressure. In the first nine months of this year, China’s domestic renminbi-denominated new loans totalled RMB5.7 trillion (US$856.8 billion).
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