Lending Spikes in November

M2 money supply increased 11.98% in November, the slowest growth since September. The big growth area was bank loans, which appears to have been the result of central bank internvention. Without the spike in bank loans, the decline in total social financing (TSF) would have been right on trend.

Chinese banks increase lending faster than seen
Chinese banks increased lending faster than expected in November amid signs that the central bank's bid to expand credit to a slowing economy was working.

The People's Bank of China last month continued to rein in lightly regulated shadow-bank lending even as it routed credit to the real economy, economists said Friday. But some added that it was too early to tell whether the monthly new loan expansion represented a sustained credit boost or a temporary blip at a time of weakness in the nation's manufacturing, real estate and trade sectors.

China tells banks to step up lending to lift flagging growth
China has told its banks to lend more in the final months of 2014 and relaxed enforcement of loan-to-deposit ratios to expand credit, sources told Reuters, as Beijing prepares to release data that could confirm the relentless slowing of its economy.

...Two sources with knowledge of the matter said China's central bank increased the annual new loan target to 10 trillion yuan ($1.62 trillion) for 2014, up from what Chinese media have said was a previous target of 9.5 trillion yuan.

Banks have disbursed 8.23 trillion yuan of loans between January and October, so they will have to quicken the pace in the last two months if they are to meet the new target.
Charts below the break.

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