Reuters | February 22, 2012 22:45
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China's four biggest State-owned banks extended about 70 billion yuan ($11.1 billion) in new local-currency loans between February 1 and February 19, suggesting a big drop in lending, Shanghai Securities News reported Wednesday.
With just 10 more days remaining in February after that period, the figure suggests lending by the biggest banks, which typically accounts for 30 percent to 40 percent of overall new loans, could drop significantly for the month.
Media reported earlier this month that new lending by the big four totaled 320 billion yuan in January, just over 40 percent of a total of 738.1 billion yuan in new loans by banks that month.
The big four State-run banks are Industrial and Commercial Bank of China Ltd, China Construction Bank Corp, Bank of China Ltd and Agricultural Bank of China Ltd.
Total lending, including other Chinese banks, could still exceed the January figure, the paper said, citing unnamed bank sources.
It is also possible that credit extensions could surge in the final days of February. Banks sometimes book lending in spurts of several days, and the cut in required reserves by the central bank, which goes into effect tomorrow, could boost lending.
The central bank lowered the amount of cash banks must hold in reserve Saturday, boosting lending capacity by an estimated 350 billion yuan to 400 billion yuan.
Reuters
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