Jan. 20 (Bloomberg) -- China has told some banks to limit lending and will restrict overall credit growth in the nation to 7.5 trillion yuan ($1.1 trillion) this year, banking regulator
Liu Mingkang said.
Some lenders were asked to rein in credit because they failed to meet regulatory requirements including those for capital, Liu, chairman of the
China Banking Regulatory Commission, said in an interview today in Hong Kong. New loans in the first 10 days of this year were “relatively high,” he told the Asian Financial Forum.
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Last year’s record loan growth helped economic growth rebound to 8.9 percent in the third quarter of 2009. China will release fourth-quarter growth figures tomorrow. The world’s third-biggest economy may have expanded 10.5 percent in the final three months of 2009, according to the median forecast of 41 economists in a Bloomberg News survey.
Loan growth will “ease very soon,” according to a transcript of Liu’s speech posted on CBRC’s Web site.
“We will continue this year to control the pace and amount of credit supply,” which will “come down to 7.5 trillion yuan this year,” Liu said.
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China Asks Some Banks to Limit Lending as Loans Surge (Update1) - Bloomberg.com