Weak lending by the big four banks over three weeks may not hinder February's new lending from surpassing January's.

by caip2692 on 2012-02-25 11:48:23

The weak situation of credit投放 has not been significantly alleviated. According to informed sources, by February 19th, the four major banks had issued about 70 billion yuan of new RMB loans in February, with one major bank showing negative growth in new loans. In the first two weeks of February, the four major banks issued only over 30 billion yuan in new RMB loans, which was surprisingly low. In the following week, the four major banks apparently increased their loan issuance efforts, with the weekly issuance volume almost equaling that of the previous two weeks, but still without explosive growth. According to informed analysts, apart from insufficient effective demand, the weakness of new loan issuance compared to previous performances is also partly related to local government financing platform loans and real estate loans. For instance, local government financing platform loans were once a key area for bank credit issuance over the past three years, and are currently gradually maturing. Moreover, new credit supply in this area is also strictly restricted. Banks have temporarily failed to find more alternative credit issuance areas, naturally resulting in weak growth.