May new credit may fluctuate by 500 billion

Experts suggest: Banks should be screened for government project loans "banks should pay attention to their own risks and screen glare at government projects with commercial sustainability standards," said Guo Tianyong, director of the China Banking Research Center at the Central Institute of Finance. The new credit scale for May is about to be announced this week, and the market is leaning towards the view that the main component of the May loan is still dominated by medium-and long-term loans, and that the structure has not changed significantly, so new loans may fluctuate by 500 billion. This forecast, combined with the credit scale of 5.17 trillion in the previous April, amounted to almost 5.8 trillion of credit. Credit is already more than 2008 of total credit, including government-financed projects.　　The banks ' "demands" on government projects have caused the industry to worry about the repayment problem. Guo Tianyong that the size of new credit in May could be slightly lower than in April. Banks still lend from the demand for loans, and government project lending needs are almost complete in the early stages, and government programs will have less credit than the new stimulus has yet to come.　　Therefore, there should be a slight decline. Wang Paolen, an analyst at Ping An securities, said the new loans in May were likely to fluctuate by 500 billion. The economic data of April show that the fundamentals of economic recovery are not solid and have some ups and downs. From this point of view, if the future economic worries increase, monetary policy will not be adjusted for the time being, only to support the economic development in a sound and sustainable way. Monetary policy is fine-tuning even if it is to be adjusted. From this continuity, March bank new loans up to 1.89 trillion, April, the new loans fell to 591.8 billion yuan, compared to March is a big decline. If there is a big pullback in May, it will have a significant impact on both market confidence and capital volume.　　This may have implications for the second wave of the economy as a whole. Data from the central bank revealed that new loans for Water Conservancy, environment and public facilities management, transportation, warehousing and postal services, leasing and business service were increased by 377.9 billion yuan, 230.4 billion yuan and 189.5 billion yuan respectively year-on-year.　　The data show that the state-owned banks in the first quarter of the medium-and long-term loans increased by 1.9 trillion yuan, the year-on-year increase of 1.1 trillion yuan, accounting for the proportion of loans to 40.7%, of which most of the government background loans. Wang Paolen said that as the first batch of government projects, due to the brewing time is relatively adequate, bank credit review work done in place. Therefore, the loan quality of the first batch of projects can be guaranteed.　　But not every credit review has plenty of time to prepare, and banks must be kept strictly under review. Guo Tianyong says banks are now "responsive" to loans from government projects, as they did to colleges and universities, saying that even if bad loans are formed, the state will write off the responsibility of banks and related officials. But college loans have been badly damaged., and if the loan to government projects is not controlled and screened, the problem of bad debts that may arise will be even greater. Therefore, Guo Tianyong stressed that the bank's project on government loans must also be screened, although the current expansion of domestic demand for banks to increase credit lines, the recent State Council executive meeting has lowered the threshold of capital, banks still need to pay more attention to the commercial sustainability of loan projects, reduce potential bad debts.