China’s central bank has encouraged lenders to cap the amount of new loans they issue in early 2024 and shift some forward to this year as authorities try to smooth the credit cycle, people familiar with the matter said.
The People’s Bank of China last week guided lenders to make sure the value of new loans they extend in January-to-March does not exceed the quarterly average issued over the past five years, said the people, asking not to be identified discussing a private matter. The guidance from the PBOC implies a limit in the first quarter of 7.9 trillion yuan ($1.1 trillion) in loans, according to Bloomberg calculations — a quarter less than the amount in the first three months of 2023.
Read More : China Directs Banks to Limit Early 2024 Loans, Redirects Some Forward