The broad money M2 amounted to RMB15.1 trillion yuan at end-October of 2001, up 12.9% over the same period of last year and decelerating 0.7 percentage points from previous month's growth. Narrow money M1 grew at the previous month's rate to RMB5.6 trillion yuan, up 12.3% over the same period of last year. Loans extended by financial institutions grew by 11.4%. The needs of economic growth have been basically met by the increase of money supply and loans, with credit structure improved and loans on agriculture and private consumption keeping increasing.The cash reflow to the banking system in October reached RMB58 billion yuan, 27.5 billion higher over October 2000. The total cash reflow to the banking system in the first ten months of this year amounted to RMB16.8 billion yuan, up RMB30.2 billion over the same period of last year. Cash in circulation at end-October totaled RMB1.45 trillion yuan, up 6.6% over a year earlier.The outstanding loans of financial institutions increased by RMB958.8 billion yuan in the first ten months to 10.9 trillion at end-October, up 11.4% over a year earlier. Loans on agriculture, consumption and housing as well as discount facilities enjoyed higher growths of RMB93.5 billion yuan, 222.9 billion yuan, RMB180.2 billion yuan and 132.8 billion yuan respectively.The growth of loans of financial institutions has decelerated due to the decline of effective demand for infrastructure loans and relevant working capital loans, the effective regulation on illegal loan extension as well as the decline of demand for loans on agricultural procurement.Total deposits held by financial institutions increased by 16.8% in the first ten months to RMB14 trillion yuan at end-October. Deposits of enterprises grew by 15.9% to RMB4.9 trillion yuan, accelerating by 1 percentage point from the previous month, reflecting sufficient supply of funds available for enterprises.The household savings increases by RMB751.4 billion yuan, or 13.8% to RMB7.18 trillion yuan, accelerating by RMB68.7 billion yuan, or 7.3 percentage points over the same period of the previous year. At end-October, the RMB exchange rate stood at 8.2768 yuan per US. dollar, appreciating by 13 basis points in the first ten months.A PBC official reiterates that the central bank will continue to pursue the sound monetary policy, require commercial banks to establish proper incentives for loan extension and strengthen internal management. The official also emphasizes that the relationship between preventing and dissolving financial risks and supporting economic growth has to be handled properly by adjusting the authorization and responsibility on loans extension of branches of commercial banks to meet the loan demand of small firms. Foreign currency loans will be expanded and the role of rural credit cooperatives has to be strengthened.
Date of last update
Nov. 29 2018
