China’s four largest banks and the country’s nine stock-holding banks issued more than US$45 billion in new loans in September, Reuters reported, citing the China Securities Journal. Agricultural Bank of China (ABC, 601288.SH, 1288.HK), Bank of China (BoC, 601988.SH, 3988.HK), China Construction Bank (CCB, 601939.SH, 0939.HK) and Industrial and Commercial Bank of China (ICBC, 601398.SH, 1398.HK) increased their lending by US$30 billion in September, while the stock-holding banks granted US$15 billion in new loans. Total lending by China’s banks for the month of September may reach US$75 billion, exceeding the government’s lending target of US$42 billion for the month. The jump in lending comes after months of speculation that excessive lending by China’s banks would result in more non-performing loans and inflation. Chinese authorities raised the reserve requirements for China’s six largest banks to help mitigate inflationary pressures.
Categories