2010.10.1122:12:00UTC+00Pboc Raises Rrr by 50 Bais Points to China's Leading Banks on Grounds of Excessive Lending

News:

• Excessive lending by China's leading banks in September, led the central bank of China to raise their required reserve ratio (RRR) by 50 basis points, the fourth hike in 2010, China Securities Journal reported on Tuesday.
• China's four biggest state-owned banks and the country's nine joint-stock lenders lent out more than 300 bln yuan ($45 bln) in combined new loans in September.
• The "Big Four" lenders, Bank of China, Agricultural Bank of China, Industrial and Commercial Bank of China, and China Construction Bank, heightened lending by more than 200 bln yuan ($30 bln) in September.
• The nine joint-stock banks, including China Merchants Bank and China Minsheng Banking Corp, lent out more than 100 bln yuan in new loans.
• Based on the government's full-year lending target and banks' normal pace of lending, China's total lending in September, incorporating loans from smaller commercial banks, may exceed 500 bln yuan, topping the previous estimate of 280 bln yuan.
• The Economic Information Daily, a newspaper under the official Xinhua news agency, reported market rumours estimating that new loans in September at 650-700 bln yuan.
• Economists polled by Reuters forecast that China to have extended 500 bln yuan in new loans September, down from 545 bln yuan in August.

Quotes:

• "This adjustment (of reserve requirements) is because credit issuance in September surpassed regulators' expectations and it is also related to rising inflationary pressure in the future," it cited an unnamed source as saying.