China Urges Banks to Boost Lending After Slow Start to 2022
- PBOC issued window guidance this month, people familiar say
- Central bank is loosening monetary policy, diverging with Fed
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China is quietly urging banks to increase lending after a slow start to the year, ramping up efforts to combat the weakest economic expansion since early 2020.
The People’s Bank of China gave so-called window guidance to large state-owned lenders and regional banks in mid-January, encouraging them to extend more credit to companies and households, people familiar with the matter said, asking not to be identified discussing private information. Bank lending in the first two weeks of the year was lower than in the same period of 2021, one of the people said.