China’s banking regulator has issued two regulations that aim to tighten banks’ lending and risk management controls.
Banks must set a lending quota after “prudent calculation” of borrowers’ “actual demand” and must not lend excessively, the China Banking Regulatory Commission (CBRC) said in a statement on its website on Saturday.
Banks are also required to improve risk [...]
The People’s Bank of China (PBOC), the country’s central bank, announced Friday it will raise the deposit reserve requirement ratio (RRR) for Chinese financial institutions by 0.5 percentage points from February 25 this year.
The ratio would not change for small financial institutions, such as the rural credit cooperatives, as the PBOC wants to support the [...]
China’s new yuan-denominated lending last year hit a record 9.59 trillion yuan (1.4 trillion U.S. dollars), almost double that of the previous year, the People’s Bank of China (PBOC), the central bank, announced Friday.
The figure compared with the 5-trillion-yuan annual target the government set at the beginning of 2009.
New yuan-denominated lending in December rose to [...]
The central bank’s hike of the reserve requirement ratio (RRR) is just a prelude to a series of tighter monetary policies. Further steps, including increasing bank reserves, raising interest rates and direct credit controls, are widely expected to come into effect, said economists.
Tags: central-bank, China Finance, PBOC, Property
China has moved and is expected to take more steps to rein in excessive money supply, which resulted in rising concerns of inflation and a bubble in the property market, experts say.
The latest move came from the People’s Bank of China, the central bank, which announced late Tuesday to raise the deposit reserve requirement ratio [...]
China took new steps on Tuesday to control bank lending, ordering institutions to set aside more reserves in a move to avert a surge in credit that Beijing worries might fuel inflation or asset price bubbles.
China’s nascent rebound from the global crisis was fueled by a flood of lending by State-owned banks last year. Bankers [...]
