Photo: AP Images
China’s largest banks lent some 300 billion yuan last month, the country’s official securities journal reports. The Security Times says that figure, which represents $47.5 billion, would mean that total loans in March could hit 900 billion yuan, a strong jump from February’s disappointing 710.7 billion pace.
The four largest banks in China write between 30 and 40 per cent of the country’s new debt.
Bank lending has fallen from the surge seen at the end of 2011, with January new debt increasing by 738.1 billion yuan. Economists had expected the figure to top 1 trillion yuan after a strong December, and expected the government to implement some form of easing.
Even if lending increases during the month to its fastest rate in three months, a recent report out of Deloitte Touche Tohmatsu could temper expectations.
Data from Deloitte shows that a rise in non-performing loans in China is on the horizon, with the total ratio likely hitting the high single-digits.
However, Deloitte analysts do not believe the bad debt will substantively impact the country.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.