March 05, 2009

After extending credit to small- and medium-sized companies in August 2008, China's central bank developed policies to lower both interest rates and bank reserve requirements, which would ease the loan conditions. But since banks have become parsimonious with loans, the increase of mid- and long-term loans began to slow down since the third quarter of 2008.

Deposits increased to RMB6,560bn in China's financial institutions 01/2008-09/2008, up RMB1,810bn year on year. The variety of deposits shows that the contribution of non-financial companies and governments slowed, while deposits from residents accounted for a majority, and dominated by regular deposits. Data show that the share of regular deposits increased to 47.7% of the total in renminbi, up 1.5% from the previous quarter, and 1.2% from the previous month.