Web Exclusive

China's banks 7t yuan lending limit in 2011

By Hao Yan (chinadaily.com.cn)
Updated: 2010-11-18 15:56
Large Medium Small

Sources have predicted Chinese banks' total loans in 2011 may be less than seven trillion yuan ($1.1 trillion), but more than six trillion yuan, Securities Times reported on Thursday.

China's central bank should restrict the lending quota in 2011, and "make it around six to seven trillion yuan," the newspaper quoted Wang Tao, head of China Economic Research at UBS Securities Co Ltd, as saying.

The government must concentrate more on managing inflation, as the country's exports and property constructions are developing strongly now, said Wang.

China's banks 7t yuan lending limit in 2011Shale gas lures oil majors
Related readings:
China's banks 7t yuan lending limit in 2011 China's major banks deny suspension of real estate loans
China's banks 7t yuan lending limit in 2011 China regulator urges banks to adopt Basel III-paper
China's banks 7t yuan lending limit in 2011 Chinese banks' Q3-end capital adequacy ratio up to 11.6%
China's banks 7t yuan lending limit in 2011 Banks yield less this year than 2009
"The lending may return to an ordinary scale compared with that of this year, and the total lending may be between 6.5 trillion yuan and 7 trillion yuan," said sources specializing in the banking sector at a large securities firm based in southern China.

"The central bank will slow down the growth of money supply next year, because of the overall inflation pressure," the newspaper quoted an analyst at a large bank in Beijing as saying.

"On the other hand, the need for loans will grow next year, as the economy is bottoming out. This trend is shown in the bounce back of short term loans," said the analyst.