Decline in deposits, loans due to 'seasonal factors'

Declines in bank deposits and new loans in July were mainly due to seasonal factors and not a cause for concern, according to financial analysts.

The renminbi deposits of the four largest lenders by assets declined by 1.5 trillion yuan ($243 billion) in July from an increase of 2.2 trillion yuan in June. During the same period, the big four State-owned banks' new yuan loans also fell to 210 billion yuan from 290 billion yuan, Shanghai Securities News, one of the leading Chinese financial newspapers, reported on Tuesday.

Bank of Communications Co Ltd estimated in a research report on July 31 that China's new yuan loans reached 780 billion yuan in July, falling from 1.08 trillion yuan in the previous month.