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 Corrupt banking tricks blunt China's drive to increase lending

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RR Phantom

RR Phantom

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Corrupt banking tricks blunt China's drive to increase lending Vide
PostSubject: Corrupt banking tricks blunt China's drive to increase lending   Corrupt banking tricks blunt China's drive to increase lending Icon_minitimeFri Nov 28, 2014 10:58 pm

China hopes that last week's interest rate cut will increase lending into the economy to shore up flagging growth, but measuring any rise will be impeded by the tricks the country's bankers use to manipulate the figures.

Corrupt banking tricks blunt China's drive to increase lending Article%20Lead%20-%20wide6362212811si18image.related.articleLeadwide.729x410.11vn5c.png1417186684254.jpg-620x349

Chinese banks, which are heavily controlled by the government, are often instructed to match their lending practice to further official policy, and when the People's Bank of China cut rates for the first time in two years on Friday, it made clear that helping smaller firms gain access to credit was among its goals.

Outstanding yuan loan growth slipped to its slowest in almost nine years in October, and the PBOC's efforts might well succeed in raising the headline figures, but bankers say it is commonplace to game the statistics to hit targets.

Read more: http://www.smh.com.au/business/banking-tricks-blunt-chinas-drive-to-increase-lending-20141127-11vn5c.html#ixzz3KQVcMqAd
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