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New loans in February expected to be Rmb 700bn

  • Published 10 Mar 2010

February lending is expected to be around Rmb 700bn ($102.5bn, £68.8bn, €75.7bn), according to domestic banking sources, down sharply from January when new loans hit Rmb 1,390bn. It may however be too early to construe that credit tightening measures are impacting lending behaviour. Lending days were cut significantly in February due to the Chinese New Year holiday between February 14-20, and the fact that February was a short month.

March lending will therefore be crucial for the China Banking and Regulatory Commission (CBRC) to decide whether further tightening measures are necessary. It earlier drafted that new loans must not exceed Rmb 7,500bn this year, with the ratio to be split '3:3:2:2' between quarters. To that end, first quarter lending should not exceed Rmb 2,250bn, but is already looking likely.

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