New bank loans rose a further 16% in May despite government attempts to cool the economy, according to a report published in the official Shanghai Securities News. The US$26.14 billion in new loans in May takes the total for the first five months of the year to US$264.4 billion, accounting for 85% of the government's US$312 billion loan target for the year. New lending is now expected to exceed US$374.5 billion this year, derailing government plans to discourage excessive investment. "The dilemma is deepening as the overall economy is overheating and some industries are producing too much, and this could bring on a crisis in the financial markets," the report said. The four biggest state commercial banks accounted for half of the new loans.