Chinese banks new loans hit $274.91b in June

Household loans dominated monthly lending.

Reuters reports that Chinese banks extended $274.91b (RMB1.84t) in net new yuan loans in June in line with a looser monetary policy being charted by the central bank. 

The move comes after China announced its third cut to the required reserve ratio this year, unleashing $104.85b (RMB $700b) in liquidity in order to spur lending to SMEs.

Also read: Chinese banks brace as more reserve cuts loom to boost credit-short SMEs

Broad M2 money supply edged up 8% YoY in June. Outstanding yuan loans in June also rose 12.7% YoY.

Household loans, mostly mortgages, accounted for more than third (38.4%) of new lending after rising from $92.01b (RMB 614.3b) in May to $105.94b (RMB707.3b) in June. Corporate loans rose from $78.71b (RMB 525.5b) to $147.07b (RMB 981.9b) n June.

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