Continue to lend: China
(16 December 2010 – China) The China Banking Regulatory Commission has urged Chinese Banks to continue satisfying normal demand for loans this month, indicating that the government is trying to avoid an over-tightening of credit.
The regulator said in a statement that it was responding to media reports claiming that they were strictly controlling the issuance of loans in December after banks nearly exhausted their full-year lending target.
'The commission has recently urged banks to strengthen management of credit risks, while ensuring that the normal demand for loans by individuals and enterprises can be satisfied,' the CBRC said in a text message sent to reporters.
Bank loans were especially important for on-going projects to ensure that they have an uninterrupted cash flow, it said.
The commission highlighted that efforts to control the pace of lending had already been achieved this year.
Questions were raised about whether the government would try and slow the issuance of loans after Chinese banks almost reached the full-year lending target of 7.5 trillion yuan (A$1.4 trillion) by the end of November.
Control of credit issuance is one of the most important monetary policy tools in China and many in the market had thought that Beijing might crack down harder on lending as a way of tamping down on inflationary pressures.
'The commission has recently urged banks to strengthen management of credit risks, while ensuring that the normal demand for loans by individuals and enterprises can be satisfied,' the CBRC said in a text message sent to reporters.
Bank loans were especially important for on-going projects to ensure that they have an uninterrupted cash flow, it said.
The commission highlighted that efforts to control the pace of lending had already been achieved this year.
Questions were raised about whether the government would try and slow the issuance of loans after Chinese banks almost reached the full-year lending target of 7.5 trillion yuan (A$1.4 trillion) by the end of November.
Control of credit issuance is one of the most important monetary policy tools in China and many in the market had thought that Beijing might crack down harder on lending as a way of tamping down on inflationary pressures.
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