From Dow Jones Newswire
SHANGHAI (Dow Jones)--Some Chinese banks have voluntarily raised interest rates on their loans from 10% to 45%, the China Securities Journal reported Wednesday, citing unnamed industry sources.
The bank has reached its January loans target and have ordered its branches to raise interest rates so as not to exceed the bank''s quota, the paper said, citing a source.
Another unnamed joint-stock bank has also raised interest rates for loans extended to small and medium-sized enterprises by about 40% since the beginning of the year, the paper said, citing another source.
Meanwhile, the China Business News reported Wednesday that new yuan loans this year have reached CNY1.2 trillion as of Jan. 24, citing an unnamed authoritative source.
The robust amount of lending underscores the challenge faced by China as it seeks to combat inflation. In its latest move to tackle rising prices, the central bank raised banks'' reserve requirement ratio by half a percentage point Thursday, following six hikes last year.
Financial institutions in China extended CNY7.95 trillion of loans in 2010, above the official target of CNY7.5 trillion. In 2009, bank loans hit a record CNY9.6 trillion, as the government sought to boost the economy after the global financial crisis.
Link: Newspaper Website
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