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Central bank: new loans slowdown reasonable |
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14:54, August 12, 2009 |
Analyst: new loans to top 10 trln yuan in 2009
According to the People's Bank of China (PBOC), new yuan-denominated loans slowed to 355.9 billion yuan (52.04 billion USD) in July, down 77 percent from 1.53 trillion yuan in June, marking the lowest monthly level in 2009.
An official at the PBOC said that although the July figure is lower than those of the first six months of 2009, it is much higher than the average level of July’s new loans in the previous seven years.
It is common that new loans in the first half of a year are always more than that of the second half. New loans in "start-of-quarter" months like April, July and October are always lower than that of "end-of-quarter" months, he noted.
Currently, a group of projects invested by the central government which will be launched in August were still under preparation in July and required no loans. Private investment only marked a small growth in July. All these led to the relevantly small new loans demand in that month.
These factors helped us figure out that the slowdown of new loans growth in July was reasonable.
China's overall surge in credit in the first half of 2009 has proved its important role in spurring the economy. However, this may also create problems and concerning situations. Banking regulators have urged banks to balance their lending and carefully control credit risks while extending loans.
By People's Daily Online
http://paper.people.com.cn/rmrb/html/2009-08/12/content_317868.htm
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