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China's lending growth to slow: PBOC official

Published: 23 Apr 2009 17:30:44 PST

Apr. 24, 2009 (China Knowledge) - The lending growth in China is expected to slow down and remain at a sustainable level in the remaining months of this year, said Yi Gang, vice governor of the People's Bank of China (PBOC) on Wednesday.

Reportedly, PBOC has called for the nation's major banks to lend at a steadier and more rational pace on concerns of potential risks behind the credit surge.

However, the central bank will not place official limits on lending by commercial banks, according to Yi.

Yi said that the lending spree in the past several months has helped to prevent deflation, increase investments and reduce inventories of enterprises.

In the first quarter of this year, the country's new loans hit a record high of RMB 4.58 trillion, up 29.8% year on year, the highest since 1994.

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