BEIJING (Reuters) – China’s new bank loans came in softer than expected in September, figures from the central bank showed on Friday, even as it strives to bolster a shaky economic recovery amid tepid demand.
Chinese banks issued 2.31 trillion yuan ($316.15 billion) of new yuan loans in September, up sharply from 1.36 trillion in August, according to the data from the People’s Bank of China.
That missed forecasts from analysts polled by Reuters for a jump to 2.50 trillion yuan in September. It was also less than the figure of 2.47 trillion yuan in September last year.
Household loans, including mortgages, rose to 858.5 billion yuan from 392.2 billion in August. Corporate loans climbed to 1.68 trillion yuan from 948.8 billion in August.
The figures came as a central bank official vowed to deploy monetary policy in a “precise and forceful” manner, adding that the bank has ample policy room to support the economy.
In September, the central bank cut the reserve requirement ratio, or the amount of cash banks must hold as reserves, for the second time this year, as part of measures to prop up domestic demand.
Some analysts, unnerved by a prolonged property slump and weak consumer spending, are still not convinced China will be able to meet its annual growth target of about 5%, despite signs of stabilising.
The broad measure of money supply M2 expanded 10.3% from a year earlier, central bank data showed, missing the Reuters poll forecast of 10.7%. M2 grew 10.6% in August from a year earlier.
Outstanding yuan loans in September grew 10.9% from a year earlier, which undershot forecasts and was down from 11.1% in August.
Annual growth of outstanding total social financing (TSF), a broad measure of credit and liquidity in the economy, hit 9% in September, unchanged from August’s rate.
TSF includes off-balance sheet forms of financing outside the conventional bank lending system, such as initial public offerings, loans from trust companies and bond sales.
In September, TSF climbed to 4.12 trillion yuan from 3.12 trillion in August. Analysts polled by Reuters had predicted TSF of 3.8 trillion yuan in September.
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