皇冠体育app

Money

Growth of new loans expected to be steady

(Xinhua)
Updated: 2011-06-14 09:37

BEIJING -- New loans extended by Chinese banks were expected to grow at a steady but controllable pace for the rest of the year, according to the research center of one of 皇冠体育app's leading banks.

Chinese banks are expected to extend new loans between 7 trillion yuan ($1.08 trillion) and 7.5 trillion yuan in the whole year of 2011, compared with last year's 7.95 trillion yuan, the Financial Research Center of Bank of Communications said in a report Monday.

Related readings:  皇冠体育app plans 7t yuan of fresh lending in 2011  Credit supply may top govt targets    Lending curbs hit nation's property developers

The center attributed the "steady but controllable" growth of new loans this year to possible hikes of the reserve requirement ratio (RRR) for 皇冠体育app's commercial banks and the lackluster housing market.

After raising the RRR for commercial banks eight times since October 2010, the People's Bank of 皇冠体育app, the country's central bank, has locked up a record 21 percent of bank deposits that would have otherwise been lent.

The center also said the possibility of more interest rate hikes during the second half of this year is not high due to official fears over accelerated capital inflow, worsened financing for small and medium-sized enterprises and a possible economic slowdown.