China’s big four state-owned banks have recorded little to no new home loan growth in the first half of May from the same period in April, indicating a slowdown in the world’s second largest economy.
According to a media report, new loans at two of the banks only grew by 20 billion yuan (S$4 billion) during the period while the other two banks saw a decline.
The report noted that net deposit outflow for these banks, including China Construction Bank, Industrial & Commercial Bank of China, Agricultural Bank of China and Bank of China, totalled just 200 billion yuan (S$40 billion).
The big four banks typically represent 30 to 40 percent of lending in the entire financial system of the country.
For the first half of May, new lending by mainland banks reached 681.8 billion yuan (S$136.4 billion), below the market forecast of 800 billion yuan (S$160 billion). The banking regulator said it is analysing the causes of volatility in the pace of new lending.
Meanwhile, the China Banking Regulatory Commission said it has no plans to order changes in the loan-to-deposit ratio to boost borrowings.
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