Pursuits
China Tackles First-World Quandary as $800 Billion Lending Freed
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China’s central bank is joining the balancing act of developed-world counterparts as it extended its toolkit to free up at least $800 billion in funds for lenders, seeking to support growth without inflaming financial risk.
The world’s largest emerging economy will broaden the definition of a deposit in 2015, boosting the lending capacity of Chinese banks that have to cap loans at 75 percent of funds held. The relaxation, reported by the official Xinhua News Agency yesterday, could make an additional 5 trillion yuan ($800 billion) to 5.5 trillion yuan available, according to analysts at Credit Agricole CIB and Guotai Junan Securities Co.