Big Four banks' loan amount stable
Updated: 2012-09-04 15:34
By Wang Xiaotian (chinadaily.com.cn)
China's Big Four State-owned banks extended almost the same amount in loans in August as in the previous month after local governments announced new investment plans valued at 7 trillion ($1.10 trillion), the 21st Century Business Herald reported on Tuesday.
China Development Bank lent about 60 billion yuan last month, while Bank of Communications extended 20 billion yuan in loans.
Concerns over lending growth emerged after lenders lent only 540.1 billion yuan in July against a market estimate of 700 billion yuan, the lowest level since October.
"Banks have become more prudent when extending loans as they're faced with pressure from deteriorating asset quality," said Guo Tianyong, banking research director at the Central University of Finance and Economics.
By the end of June, commercial banks' non-performing loans were at 456.4 billion yuan, while special-mention loans — debt that could potentially turn sour — were at 1.46 trillion yuan.