Chinese banks granted loans worth $108 bn in December

January 12th, 2009 - 12:54 pm ICT by IANS  

Beijing, Jan 12 (Xinhua) Chinese banks granted 740 billion yuan ($108 billion) in loans in December, the biggest monthly figure after 803.6 billion yuan in January 2007, the Shanghai Securities News reported Monday.This was a result of the country’s “moderately easy monetary policy” and central government’s incentives to encourage lenders to increase credit supply to boost economic growth, the paper said.

Outstanding loans topped 30 trillion yuan at the end of December, up 19 percent year-on-year, according to the report.

China Banking Regulatory Commission (CBRC) said in a statement on its website Saturday that small and mid-sized commercial banks would be given “more room” in lending.

The loan to deposit ratio of small and mid-sized lenders can exceed the required level “by a proper margin”, said CBRC.

The current allowed loan-deposit ratio for commercial banks is 75 percent, Shanghai-based Oriental Morning Post reported Monday.

Financial institutions nationwide extended more than 4.9 trillion yuan of loans last year, an increase of about 1.3 trillion yuan compared with 2007, it reported.

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