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Rapid Bank Loan Growth Arouses Attention
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The State Council and China's central bank are fully aware of the rapid growth in bank loan during the first quarter, the National Bureau of Statistics spokesman Zheng Jingping said Thursday.

 

Between January and March, Chinese banks have provided 1.26 trillion yuan in bank loans, which is more than half of the 2.5-trillion-yuan annual target, Zheng said at a press conference held by the State Council Information Office.

 

He said money supply must be in line with economic development. "A rapid growth in bank loans may give economy a spur in short term. In the long run however, it may cause inflation and confusion to a healthy economy," he said.

 

Although the first quarter has seen a 14.7 percent rise in aggregated bank loan over the same period of last year, or 1.7 percentage points higher over the 13-percent amplitude for entire 2005, the figure is still lower than the amplitudes of 2003 and 2004, Zheng noted.

 

(Xinhua News Agency April 20, 2006)

 

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