- Language: English
- 5 Pages
- Published: June 2010
- Region: China
The China Bank Lending Survey - Issue 6 2010
- Published: July 2010
- Region: China
- 6 Pages
- Pacific Epoch
This inaugural survey of Big Four and national commercial banks revealed flat lending in June and expectations of a slowdown in Q3, but also raised potential concerns over the large-scale repackaging of loans as wealth management products.
China's banking regulator warned once again in-mid June of increasing risks to the country’s banking sector from bad debt, calling on banks to continue to strictly scrutinize the pace and direction of lending and to exercise caution when lending to sectors deemed to be high-risk or overheated, notably real estate, local government financing platforms and industries suffering from overcapacity. Net new bank lending fell to RMB 639.4 billion in May, from RMB 774 billion in April. With selective tightening credit measures remaining in place, and with banking regulators raising banks’ reserve requirement ratios three times this year, while keeping benchmark interest rates on hold, leaving many banks struggling for short-term liquidity, the lending outlook over the next few months appears uncertain.
In order to gain a better picture of banks’ current lending picture and outlook, the publisher spoke to 100 contacts in charge of corporate lending at 100 branches of Big Four and national commercial banks (50 contacts from the Big Four and 50 from national commercial banks), located in 13 provinces and municipalities across east, north and central China, during the last few days of June. These banks account for more than 70% of new lending nationwide each month. Previously, the publisher had focused their efforts on city-level commercial banks. SHOW LESS READ MORE >
- Summary of key findings
- Lending outlook
- Breakdown of answers to eight survey questions