Top Biz News
Bank lending to be cut back next year
By Wang Bo (China Daily)
Updated: 2009-12-08 08:00
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A worker cleans a Bank of China branch in Guangzhou. Credit growth is supposed to be tightened moderately next year. [CFP] |
Despite the government's pledge to maintain a moderately loose monetary policy next year, the credit flood this year could not be repeated, a top executive at Bank of China told China Daily on condition of anonymity.
"The regulator has ordered banks to control the pace of lending next year, and credit growth is likely to be maintained at about an annualized 17 percent," he said.
During the three-day Central Economic Work Conference, the annual gathering to lay out economic policy for the coming year, that ended yesterday, the government promised to "maintain the continuity and stability of the economic policy".
Experts said it did not indicate a continued galloping credit expansion in 2010.
"Credit growth is supposed to be tightened moderately next year, but it will not derail the nation from the road of economic restructuring," said Li Jianwei, a senior economist at the Development Research Center, a think tank affiliated to the State Council.
In response to a government call to spur domestic consumer demand and restructure the industrial landscape, Bank of China, the nation's third largest lender, said it would adjust its loan portfolio to support the nation's economic restructuring drive and enhance personal financing services.
"The bank will continue to fund the key projects on the top of the government's agenda, such as energy saving and low-cost housing projects, as well as give loans to small and medium-sized companies," it said.
"As for those projects that do not comply with the country's industrial and environmental policy, the bank will cut lending and seek an exit from these projects," the bank said in a statement on its website.
Chinese banks had advanced 8.9 trillion yuan in new loans as of the end of October with an annualized loan expansion rate of above 30 percent in an effort to shore up the slowing economy.
The total new loans are likely to hit 10 trillion yuan this year, nearly tripling the amount extended by Chinese banks in 2008.
