China has told its banks to issue more loans in the remainder of the year.
The People’s Bank of China has relaxed limits on their loan-to-deposit ratios to help hit a record new lending target as the government steps up efforts to lift flagging economic growth, Reuters reported, citing sources.
The central bank will now allow banks to lend an unprecedented 10 trillion yuan (US$1.62 trillion) for all of this year, up from what media have reported was a previous target of 9.5 trillion yuan.
Chinese banks made loans of 8.23 trillion yuan between January and October.
The PBoC is also allowing banks to lend out more than 75 percent of their deposits.
On Nov. 21, the central bank made a surprise cut in interest rates in an attempt to re-energise the economy.
Growth could drop to its lowest in 24 years as domestic investment slows and the housing market cools.
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