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Banks to loosen grip on loans

By Ren Jie (chinadaily.com.cn)
Updated: 2010-02-02 11:47
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Banks to loosen grip on loans
The head offices of China's commercial banks approved to loosen the flow of credit on February 1 again after tightening it in late January.

An insider at a State-owned commercial bank said on February 1 that their head office has approved the line of credit and they have begun to issue loans to both the public and the private sector again.

Those who received approval for the line of credit but failed to get money in January will now receive the money, he said. It was reported that commercial banks were told to control the pace of lending and suspend extending credit in late January as loans boomed in early January. Chinese banks extended nearly 1.6 trillion yuan ($234.36 billion) worth of new yuan loans in January to rein in the aggressive bank lending...

The full text is available in the February Issue of China Banking.Please visit E-Shop for more subscription details.