China’s new RMB deposits grow in 2012
(14 January 2013 – China) A new report shows an increase in new renminbi (RMB) deposits in 2012, reaching RMB 8.2 trillion (A$1.3 trillion), 2 percent above the Chinese government’s target of RMB 8 trillion.
RMB deposits in December reached RMB 1.6 trillion with total outstanding deposits reaching RMB 94.3 trillion at end of December – up 13.3 percent year-on-year, pushing outstanding loans for end of 2012 to RMB 63 trillion, up 15 percent year-on-year.
Short-term corporate loans were the key driver of monthly new loans.
In December, new retail loans reached RMB 208 billion, less than RMB 241 billion in November.
New deposits grew with a total of RMB 10.8 trillion in 2012, up 19 percent year-on-year. New retail deposits and corporate deposits increased by RMB 1.2 trillion and RMB 1.1 trillion respectively, resulting in the FY12 year-on-year growth rate of retail and corporate deposits to 16 percent and 7 percent respectively.
The report also stated: "Despite a m/m decline in new RMB loans, total social financing (TSF) reached RMB 1.6 trillion in December (vs. RMB 1.1 trillion in November), pushing the full-year TSF to a record-high of RMB 15.8 trillion, 13 percent higher than China’s stimulus year of 2009 and 2010 and indicating loosening monetary conditions continue."
"We expect that the strong growth of non-bank credits is likely to slightly decelerate in 1Q13, primarily due to: 1) regulator scrutiny on the distribution of investment products and further regulation on LGFVs’ fundraising methods and 2) new loan quotas to stimulate bank credit financing at the beginning of each year."
Short-term corporate loans were the key driver of monthly new loans.
In December, new retail loans reached RMB 208 billion, less than RMB 241 billion in November.
New deposits grew with a total of RMB 10.8 trillion in 2012, up 19 percent year-on-year. New retail deposits and corporate deposits increased by RMB 1.2 trillion and RMB 1.1 trillion respectively, resulting in the FY12 year-on-year growth rate of retail and corporate deposits to 16 percent and 7 percent respectively.
The report also stated: "Despite a m/m decline in new RMB loans, total social financing (TSF) reached RMB 1.6 trillion in December (vs. RMB 1.1 trillion in November), pushing the full-year TSF to a record-high of RMB 15.8 trillion, 13 percent higher than China’s stimulus year of 2009 and 2010 and indicating loosening monetary conditions continue."
"We expect that the strong growth of non-bank credits is likely to slightly decelerate in 1Q13, primarily due to: 1) regulator scrutiny on the distribution of investment products and further regulation on LGFVs’ fundraising methods and 2) new loan quotas to stimulate bank credit financing at the beginning of each year."
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