An official paper predicted that Chinese banks will lend US$1.04 trillion in 2011, Reuters reported, citing an article in the China Securities Journal. The report, which cited no sources, said that the pace of new bank lending should ease considerably from last year’s US$1.22 trillion. The paper said that the central bank stipulates a formula for lending in which 60% of annual loans are issued in the first half of the year and 40% in the second half. Chinese banks are believed to have lent around US$618 billion in the first six months of the year; if banks adhere to the 60-40 ratio, total lending should not exceed US$1.04 trillion. The slowdown is driven by concerns about inflation, which is at a 34-month high. Beijing is attacking the problem through the banking sector by increasing interest rates and reducing new loans. This year’s loan quota is believed to be around US$1.1 trillion.