Liu Mingkang asks rational control of credit growth

China Banking Regulatory Committee (CBRC) has held the first meeting of this year to give analysis on the financial situation at the beginning of 2010. Liu Mingkang , the top leader, asked for rational control of loan amount from all banking sectors, to match each step of  credit growth according to effective demand and the  Requirement attached to, so as to realize steady increase loans by quarters.  From January, it sees a flood of loans amid banking sectors, with new loans reached 1.45 trillion yuan, or 1.6 times of the same level of last year.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

The central Economic Working Conference has set the tone to confine the new loans at about 7.5 trillion yuan. As experts analyzed, it would almost hit 5 trillion yuan even at the first quarter, more than 4.58 trillion year on year.

The financial regulator recently has released series of policies like window guidance, reserve requirements, in control of loan growth rate. The control is “focused on the pace other than the amount of the credit”, a leader of the commercial bank said so.

Analysts indicate the earlier adjustment by the central bank implies it has left more room for loan growth at the second half year, when foreseeing economic surging in the first half and then sliding afterwards.  Sun Mingchun, head of Nomura Securities (<?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />China) says “credit tendency is appearing tightened the first half, and will become eased afterwards”.

In his speech, Liu addressed the “three more attentions” given on the adjustment of credit structure, scientific development and on prevention of financial risks. Moreover it will continue supporting small industries and agricultural projects in assuring considerable growth and amount in this field higher than before.