Yuan-denominated loans surged nearly 4 trillion yuan in January to a monthly record


On February 10, the Central bank released the financial statistics report for January 2022, showing that at the end of January, the balance of broad money (M2) was 243.1 trillion yuan, up 9.8% year on year, 0.8 and 0.4 percentage points higher than that at the end of last month and the same period of last year respectively.Yuan-denominated loans rose 3.98 trillion yuan in January, a monthly high and well above market expectations of 3.7 trillion yuan.At the end of January, the balance of broad money supply (M2) was 243.1 trillion yuan, up 9.8 percent year on year, 0.8 percentage points higher than at the end of last month and 0.4 percentage points higher than a year earlier, according to the central bank.The balance of narrow money (M1) was 61.39 trillion yuan, down 1.9% year on year. Excluding the influence of the incorrect timing of the Spring Festival, M1 grew by about 2% year on year.The balance of money in circulation (M0) was 10.62 trillion yuan, up 18.5% year on year.Net cash issuance for the month was 1.54 trillion yuan.As for the so-called “Spring Festival timing error factor”, the Central bank explained that before the Spring Festival, due to the concentrated payment of salary and welfare by enterprises, unit demand deposits will be transferred to individual deposits, resulting in a large decrease in M1.In 2022, the last working day before the Spring Festival will fall on Jan 30, while in 2021, it will fall on Feb 10.Yuan loans rose 3.98 trillion yuan in January, traditionally the peak month for bank lending each year, and January was particularly pronounced this year.Data showed that at the end of January, outstanding RMB loans increased by 11.5% year on year to 196.65 trillion yuan, 0.1 percentage points lower than the end of last month and 1.2 percentage points lower than the same period last year.Yuan-denominated loans rose 3.98 trillion yuan in January, the highest in a single month and 394.4 billion yuan more than a year earlier.By sector, household loans increased by 843 billion yuan, including 1006 billion yuan for short-term loans and 742.4 billion yuan for medium – and long-term loans.Enterprise (public) business unit loans increased by 3.36 trillion yuan, of which short-term loans increased by 1.01 trillion yuan, medium – and long-term loans by 2.1 trillion yuan, and bill financing by 178.8 billion yuan.Loans from non-banking financial institutions decreased by 141.7 billion yuan.Previous data showed that in January 2019, financial institutions extended 3.23 trillion yuan in new yuan loans, the first time that the amount of new yuan loans in a single month exceeded 3 trillion yuan.New yuan loans continued to climb in January for the next two years.It was 3.34 trillion yuan in January 2020, 3.58 trillion yuan in January 2021, and has increased to 3.98 trillion yuan this year.In terms of deposits, at the end of January, the balance of RMB deposits was 236.07 trillion yuan, up 9.2% year on year, 0.1 percentage points lower than the end of last month and 1.2 percentage points lower than the same period of last year.Yuan deposits increased by 3.83 trillion yuan in January, 262.7 billion yuan more than a year earlier.Of this amount, household deposits increased by 5.41 trillion yuan, non-financial enterprise deposits decreased by 1.4 trillion yuan, government deposits increased by 584.9 billion yuan, and non-banking financial institutions deposits decreased by 183.6 billion yuan.Lending rates continue to fall, central bank data show.The weighted average inter-bank lending rate in January was 2.01%, 0.01 percentage points lower than the previous month and 0.23 percentage points higher than the same period last year, mainly due to the low overnight lending rate in early January last year. Excluding this factor, inter-bank lending rate in January was 0.02 percentage points lower than the same period last year.The weighted average interest rate on pledged repos was 2.04 percent, 0.05 percentage points lower than last month and 0.03 percentage points lower than a year ago.By Beijing Youth Daily reporter Cheng Jie

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