(PBOC) disclosed yesterday in a report on the financial sector's performance in 2002.
Amid concerns that banks were not offering sufficient loans to enterprises, credits in renminbi grew 15.8 percent on a year-on-year basis. The rate compares to 11.6 percent posted in 2001, according to figures released by the central bank.
"The monetary policy in 2002 has forcibly propelled economic growth," the bank report stated.
The key official barometers that the bank uses are a set of very technical indicators for money supply. M2, a leader among the set which covers cash in circulation and a variety of deposits, grew 16.8 percent against 14.4 per cent in 2001.
The central bank had aimed for a M2 growth of 13 percent at the beginning of 2002. The relatively low planned growth rate at that time was based on the commercial banks' need to exercise caution in granting new loans in order to improve their asset base.
But it adjusted its goal later in the year as calls for a faster rate of loan growth increased.
To achieve a more rapid credit growth, the bank said it intensified its efforts to channel loans into major infrastructure projects sponsored by the government. These projects have been an important stimulus to China's economic growth since 1998.
The bank drafted policies to accelerate development of promising services, such as consumer credit for car and home buyers and industries, such as real estate development.
(China Daily January 14, 2003)
