Financial Inclusion Micro-loans in China Grow over 27% in 2021, Green Lending Rises 33%: PBOC

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Financial inclusion micro-loans and green loans saw sharp growth in 2021, while growth in real-estate credit moderated, according to the latest data from the People’s Bank of China (PBOC).

As of the end of 2021 the renminbi loan balance of financial institutions in China stood at 192.69 trillion yuan, for a year-on-year (YoY) increase of 11.6%, according to data released by PBOC in its “2021 Financial Institution loan Direction Statistical Report” (2021年金融机构贷款投向统计报告).

Renminbi loans increased by 19.95 trillion yuan in 2021, 315 billion yuan ahead of the reading for 2020.

As of the end of 2021 the financial inclusion micro-and-small loan balance stood at 19.23 trillion yuan, for YoY growth of 27.3%, as well as a deceleration of 3 percentage points compared to the end of 2020.

The financial inclusion micro-and-small loan balance saw a full year increase of 4.13 trillion yuan, 608.3 billion yuan ahead of the increase in 2020.

The domestic and foreign currency green loan balance stood at 15.9 trillion yuan at the end of 2021, for a YoY increase of 33%, 21.7 percentage points ahead of overall loan growth in China and accelerating 12.7 percentage points compared to the end of 2020. The green loan balance increased by 3.86 trillion yuan in 2021.

The renminbi real estate loan balance was 52.17 trillion yuan at the end of 2021, for a YoY rise of 7.9%, and a deceleration of 3.7 percentage points compared to the end of 2020.

Renminbi real estate loans saw a full-year increase of 3.81 trillion yuan in 2021, accounting for 19.1% of all lending during the period, for a 7.2 percentage point decline compared to the full year share for 2020.