China’s Central Bank Steps Up Effort to Boost Lending
- PBOC has become more flexible on loan quotas, people say
- Trade war, higher borrowing costs threaten economic outlook
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China’s central bank has started actively encouraging banks to extend more credit by taking a softer stance on loan quotas, people familiar with the matter said, as authorities ratchet up efforts to bolster a cooling economy.
The People’s Bank of China has delivered the message via so-called window guidance, said the people, who asked not to be named discussing private information. The central bank hasn’t provided specific targets, but it indicated a willingness to be more flexible on banks’ government-imposed lending caps, the people said.