Beijing, September 14 – Chinese banks recorded a sharp increase in lending in August, with loan issuance rising by nearly 250% compared to July, when it had hit a 15-year low. Despite the significant growth, the total value of loans provided fell short of analysts’ forecasts.
Lending Volume Overview
Chinese commercial banks extended loans worth 900 billion yuan (€114.45 billion), according to the People’s Bank of China (PBOC). In July, the loan volume dropped to 260 billion yuan, the lowest level since 2009. However, analysts had predicted that lending would rebound to 1.02 trillion yuan in August, a target that was not met.
| Month | Loan Volume (billion yuan) | Analyst Expectations (billion yuan) |
|---|---|---|
| July | 260 | N/A |
| August | 900 | 1,020 |
Weak Consumer Loan Demand
Leah Fahy from Capital Economics commented that while increased government spending could help bolster China’s economic recovery in the coming months, household demand for loans is expected to remain subdued.
Lending Trends for 2023
The PBOC does not publish monthly loan data, but Reuters estimated the August figures based on cumulative lending from January to August. According to PBOC, commercial banks provided loans worth 14.43 trillion yuan in the first eight months of 2023.
| Time Period | Total Loan Volume (trillion yuan) |
|---|---|
| January – August | 14.43 |
Corporate Lending Boost
In August, corporate loans surged nearly sevenfold compared to July. Additionally, household loans returned to growth after a decline in July, signaling a slight recovery in consumer lending.
Key Keywords: Chinese bank loans, PBOC lending data, corporate loans, consumer loans, People’s Bank of China, loan growth, August lending figures
