SHANGHAI (Reuters) - China’s new bank loans in 2012 may increase slightly from this year’s quota of 7.5 trillion yuan ($1.18 trillion), but the government will maintain lending curbs on the property sector, the China Business News reported on Monday, citing an official from the China Banking Regulatory Commission (CBRC).
“The growth in new loans should rise depending on economic growth. But I don’t think it will be too different from what we have this year,” Yan Qingming, assistant to the chairman of CBRC, was quoted as saying.
Yan also said the government would continue to restrict bank lending to the property sector next year and that Beijing will closely monitor property-loan risks as prices fall.
Of China’s 53 trillion yuan of outstanding loans issued in the first nine months of this year, about 10 trillion yuan went to the property sector, the paper said, citing official statistics. China’s trust firms also have about 7 percent of their outstanding lending, estimated at about 10 trillion yuan, exposed to the property sector.
Chinese banks extended a total of 6.3 trillion yuan in new local currency loans in the first 10 months of 2011, still far below the estimated annual credit quota of 7.5 trillion yuan set at the beginning of this year.
Local media have reported that new bank loans would not exceed the quota this year, citing industry sources.
Reporting by Fayen Wong and Lu Jianxin