Banking Sector Assets Reach 239 Trillion Yuan in August

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The latest official figures indicate that Chinese bank loans staged a modest rebound in August.

Data from the China Banking Regulatory Commission indicates that the banking sector’s total assets reached 239 trillion yuan (approximately $36.6 trillion) at the end of last month.

The non-performing loans ratio for Chinese commercial banks was 1.86%, while their capital adequacy ratio and provision coverage ratio were 13.25 and 175.1% respectively.

According to CBRC interbank business, considered a key segment of China’s shadow banking sector, saw further contraction last month.

Chinese bank loans rebounded ahead of consensus forecasts to 1.09 trillion yuan ($166 million), from 825.5 billion yuan in July.

According to analysts home buyers continue to push demand for bank loans higher, despite the government’s efforts to clamp down on overheating property markets.

The August lending figure nonetheless remains well below the 1.54 trillion yuan in credit extended by banks in June.

While CBRC launched a much-vaunted crackdown on China’s banking sector in March under the leadership of new chairman Guo Shuqing, according to economist Wei Yao from Gallic bank Societe Generale the new data shows that regulators “have no intention of stifling loans to the real economy.”

Speaking to AFP Wei also pointed out that mortgages “represent an increasing share of total bank loans,” despite official efforts to curb lending by banks to home buyers.

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