China to slightly loosen monetary policy: forecast


Jul.1--China will continue with a prudent monetary policy with slight loosening expected this year, the China Banking Association (CBA) said in a report on Monday.

A significant loosening in monetary policy is unlikely this year, but authorities will be inclined to target economic control and structural support, the CBA forecasted in its report on the domestic banking sector.

In April and June, the central bank twice announced targeted cuts in the reserve requirement ratio for qualified banks engaged in proportionate lending to agriculture-related businesses and small companies, in efforts to structurally assist these market entities in the real economy.

Monday's report also predicted that banks' profit growth will decelerate to an annual growth of 9 percent this year, amid an economic slowdown, the process of interest liberalization and deepening financial disintermediation. Net profits grew 14.5 percent year on year in 2013.

Meanwhile, the CBA said that the non-performing loan ratio is expected to reach around 1.1 percent this year.

Source from : Xinhua