China’s slower loan growth is becoming a new normal as shrinking property and local government sectors weaken demand for credit faster than emerging industries can compensate, People’s Bank of China Governor Pan Gongsheng said, according to Reuters.
Pan’s comments come after official data showed that new bank lending recovered in August from a record contraction in July, but remained well below market expectations. Weak borrowing demand from households and businesses continues to weigh on overall credit expansion.
