SHANGHAI Jan 18 China's central bank has
granted its "Big Four" state-owned banks nearly 3 trillion yuan
($482.63 billion) in new lending quotas in 2013, up only
slightly from 2012, the official China Securities Journal
reported on Friday citing unnamed industry sources.
The Industrial and Commercial Bank of China Ltd (ICBC)
, the largest of the four banks by market
value, is projected to lend 900 billion yuan, according to the
quotas approved by the Chinese central bank, the newspaper said.
China Construction Bank Corp (CCB) ,
Bank of China Ltd and Agricultural Bank of
China Ltd are expected to lend 840
billion, 700 billion and 500 billion yuan, respectively.
New loans from the these banks usually account for 30-50
percent of overall new bank lending in China.
Beijing will target 8.5 trillion yuan ($1.37 trillion) in
total new local-currency loans in 2013 and 13 percent annual
growth in the broad money supply (M2), the official China
Securities Journal reported, citing anonymous regulatory
However, thanks to the explosive growth of alternative
funding channels, in particular trust loans and bonds, bank
lending is losing its place as the primary measure of Chinese
The ratio of yuan loans in China's Total Social Financing
(TSF) indicator has been steadily dropping, hitting a record low
of 52.1 percent in 2012, and analysts believe the ratio will
fall below 50 percent this year. That compares to 91.9 percent
10 years ago.
TSF is a homegrown tool introduced by regulators to measure
the total amount of fundraising in the real economy. Growth in
total TSF outpaced traditional bank lending growth dramatically
in 2012, increasing over 23 percent thanks to a sixfold increase
in trust loan issuance and 64 percent growth in bond issuance.
Bank loans increased by nearly 10 percent during the same
period, according to PBOC data.
A government official said TSF is likely to grow by over 16
percent in 2013, far more than the projected 3.7 percent growth
in local currency bank lending.
($1 = 6.2160 Chinese yuan)
(Reporting by Pete Sweeney and Chen Yixin; Editing by Simon