Banks’ Net Interest Margin rebounding

The first half of 2009 was a time during which banks did the government’s bidding. They fell over themselves to answer Beijing’s call to engineer an economic rebound. In practice, this largely meant extending credit to safe borrowers such as government agencies, local government investment companies and state-owned enterprises. However, lending rates on such loans were low – a factor behind the compression in Net Interest Margin (NIM) experienced by all banks in 1H 2009 (see chart).

China Confidential Funds

China Confidential Funds, a new research service launched by FT China Confidential, is dedicated to illuminating the mainland fund industry. Our team of fund industry experts in Shanghai search out the interesting trends in fund performance, strategy, interactions with overseas funds, regulatory changes, distribution and management. We also use a proprietary system to track the emerging flows of Chinese money. Click here to find out more.

Other Articles on this Issue

• Funds Data

  China back in vogue

• Macro View

  Talking bubbles, but spending more

• The Big Call

  Domestic brand cars to ramp up market share

• Capital Intensive China

  Real Estate – Bubble, what Bubble?

• Postcard From No 528

  International board: a Barmecidal feast?

• Consumer China

  Internet ads – Search and Rescue

  Sohu – Buoyed by games

  Sina – Behind the curve

  Baidu – Search Successful

• Financial China

  Bank regulator blinks on credit tightening

• Guest Column

  Banks, property and large caps to shine

• Forbidden City

  Renminbi internationalisation – The master plan

• The Best of Chinese Commentators

  Following the hot money

  How sustainable is the economic rebound?

• View issue