According to preliminary statistics of the PBC, for the full year 2010, total RMB and foreign currency loans by financial institutions increased RMB8.36 trillion, with RMB loans rising RMB7.95 trillion. The composition of loans has the following features:
1.Long and medium-term loans growth has moderated and volume of bill financing drops. For the full year 2010, total long and medium-term RMB and foreign currency loans by financial institutions registered a cumulative increase of RMB6.17 trillion, down RMB531.1 billion yoy. The outstanding balance at the year-end rose 26.9% yoy, down 15.8 percentage points from end-2009. Short-term RMB loans saw a cumulative growth of RMB2.47 trillion, up RMB314.7 billion yoy. Bill financing fell RMB905.1 billion cumulatively.
2.Long and medium-term loans to infrastructure industries[1] rise at slower pace while those to cultural industries pick up pace to hit new high. For the full year 2010, long and medium-term loans issued by major financial institutions to infrastructure industries increased RMB1.65 trillion. The year-end balance rose 19.4% yoy, down 27.4 percentage points from end-2009. Cultural industries became the new growth area for long and medium-term loans. For the full year 2010, long and medium-term RMB and foreign currency loans to cultural industries (culture, sports and entertainment industries) saw a cumulative increase of RMB27.6 billion. The year-end balance rose 61.6% yoy, hitting new high, up 39.1 percentage points from end-2009.
3.Property loan growth decelerates. For the full year 2010, RMB property loans by major financial institutions, rural cooperatives and urban credit unions registered an increase of RMB2.02 trillion. The outstanding balance at the year-end rose 27.5% yoy, down 10.6 percentage points from end-2009. In a breakdown, land development loans[2] rose RMB164.7 billion, with the year-end balance increasing 24.7% yoy, down 79.5 percentage points from end-2009; property development loans[3] rose RMB426.9 billion, with the year-end balance increasing 23% yoy, up 7.2 percentage points from end-2009; personal mortgage loans[4] rose RMB1.40 trillion, with the year-end balance increasing 29.4% yoy, down 13.7 percentage points from end-2009.
4.Financial institutions scale up support for consumption. For the full year 2010, personal consumption loans[5] in RMB by financial institutions saw an increase of RMB1.89 trillion, up RMB89.9 billion yoy, accounting for 23.7% of RMB loan growth in 2010 compared with a share of 18.7% in 2009. The outstanding balance at the year-end rose 35.7% yoy, 15.8 percentage points higher than overall RMB loan growth in the same period. In terms of maturity structure, short-term and long and medium-term personal consumption loans rose RMB293.5 billion and 1.59 trillion respectively, up RMB47 billion and 42.9 billion respectively yoy.
5.SME loans grow faster than loans to large enterprises. At end-2010, large enterprise loans by major financial institutions, rural cooperatives, urban credit unions and foreign-funded banks registered an outstanding balance ofRMB13.42 trillion (bill discounting included), up 13.3% yoy. Loans to medium-sized enterprises registered an outstanding balance of RMB10.13 trillion, up 17.8% yoy, 4.5 percentage points higher than the growth of outstanding loans to large enterprises. Outstanding loans to small enterprises increased 29.3% yoy to RMB7.55 trillion, surpassing the growth of those to large enterprises by 16.0 percentage points. The structure of loans saw further improvement.
6.Rural loans rise faster than loans overall in the same period while loans to farmers grow at slower pace than household loans in the same period. At end-2010, RMB and foreign currency rural loans by major financial institutions, rural cooperatives, urban credit unions, villageand township banks and finance companiesrecorded an outstanding balance of RMB9.80 trillion, up 31.5% yoy, a deceleration of 2.7 percentage points from the same period in 2009, surpassing overall RMB and foreign currency loan growth in the same period by 11.9 percentage points. Outstanding RMB and foreign currency loans to farmers increased 29.4% yoy to RMB2.60 trillion, a deceleration of 3.4 percentage points from the same period in 2009 8.3 percentage points lower than household loan growth yoy. Outstanding RMB and foreign currency loans to farming, forestry, animal husbandry and fishery increased 18.3% yoy to RMB2.30 trillion, a yoy deceleration of 7.0 percentage points, 1.4 percentage points lower than overall RMB and foreign currency loan growth in the same period.
7.Loans to central and western regions grow faster than those to the eastern region. For the full year 2010, total RMB and foreign currency loans issued by financial institutions to eastern, central and western regions registered yoy increases of RMB4.97 trillion, 1.47 trillion and 1.66 trillion respectively[6], with their outstanding balances at the year-endrising 18.8%, 20.7% and 23.2% yoy respectively. Loans to the central region and to the western region grew at a pace 1.9 and 4.4 percentage points faster than those to the eastern part respectively.
Growth of foreign currency loans slows down dramatically. For the full year 2010, total foreign currency loans by financial institutions rose USD74 billion. The year-end balance increased 19.5% yoy, down 36.5 percentage points from end-2009.
[1] Infrastructure industries include transport, warehousing and postal industries, water, electricity and gas production and supply industries, and water, environment and public facilities management industries.
[2] Refers to loans issued by financial institutions for land development. The loans are to be repaid at the completion of the development.
[3] Refers to property construction loans by financial institutions, including residential property development loans, commercial property development loans and other property development loans.
[4] Includes personal commercial property loans and personal home loans.
[5] Includes personal home loans, home improvement loans, auto loans, student loans, consumer durables loans, travel loans and other loans.
[6] Bank headquarters loan growth, listed as a separate item, is not included in the growth of loans to eastern, central and western regions. As a result, the sum of the three regions loan growths is unequal to their total loan growth.
