Chinese banks initiate economic recovery
According to the Reuters poll, Chinese new bank loans are supposed to have recovered in March. The government keep encouraging lenders to provide help for the companies impacted by the pandemic.
China’s banks have reportedly issued around 1.80 trillion yuan in net new loans March. This figure is almost two times more, than loans issued in February, which have amounted to 905.7 billion yuan. It even surpasses the figures of March 2019 - 1.69 trillion. The numbers are based on the estimates of 31 experts polled by Reuters.
Following a record growth of loans in January, ledning has gone down fast in February. According to the analysts, however, the decline has been caused by the seasonal factors, not by the pandemic.
On April 3 the central bank has reduced the amount of cash necessary for the reserves of smaller banks and has let about 400 billion yuan go in liquidity. According to Reuters sources, the PBOC might boost its policy easing to help the economy.