New loans to reach 7.1 trillion yuan in 2011
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China is expected to adopt a steady and tight monetary policy next year, and the growth rate of new loans will drop to 15 percent, meaning total new loans of about 7.1 trillion yuan (US$1.07 trillion), according to Xia Bin, an adviser to the People's Bank of China.
Xia also said that although some banks believe there is still room for increasing deposit reserve ratios, such a move would influence bank share prices and needs thoughtful consideration.
The central bank announced last Saturday it was to raise the benchmark interest rate by 25 basis points starting from Sunday, the second adjustment to rates within the past two months.
Xia also said it would be prudent for China to retain foreign exchange reserves of around US$700 billion, since the surplus can be used for multiple purposes.
China's business press carried the story above on Monday. China.org.cn has not checked the stories and does not vouch for their accuracy.
