While joint-equity banks struggle in tight boxes, State-owned commercial banks still enjoy strong lending ability, National Business Daily reported today.
According to the first quarter reports of China's four major State-owned listed banks, Commercial Bank of China (ICBC), China Construction Bank (CCB) and Bank of China (BOC) are keeping their loan-to-deposit ratio under 75 percent, the industry requirement. Only Bank of Communications has exceeded the requirement, the newspaper reported.
According to statistics, in the first quarter, the loan-to-deposit ratio of ICBC and BOC rose from the end of last year to 59.36 percent and 72.36 percent while CCB has seen its loan-to-deposit ratio fall slightly to 59.95 percent.
Based on the amount of deposits, the three banks can increase their total new lending by 3.1 trillion yuan without touching the supervisory redline, the newspaper said.
Recently, the central bank decided to raise the deposit reserve requirement ratio for the third time in a year to tighten liquidity.
Zhu Jianfang, analyst with CITIC Securities, said that the recent adjustment of the reserve requirement will not result in a shortage in money supply or have apparent effects on the economy as the financial system still had adequate liquidity.
