June 26, 2013
Branches of Bank of China and the Industrial and Commercial Bank of China (ICBC) have stopped lending amid the country’s current liquidity squeeze, according to Caixin Online.
The two banks, are part of the country’s Big Four. Bank of China was reportedly having a hard time meeting loan-to-deposit requirements before the liquidity squeeze and it plans to resume lending on July 15.
Meanwhile, ICBC’s headquarters set a cap on lending, but what was unusual was that “headquarters had cut down on the quotas to make room for its own operations,” according to Caixin. Other sources however said this wasn’t a major problem.
Chinese interbank rates, or the rates at which banks lend to each other, began spiking before the Dragon Boat festival earlier this month.
This article was posted: Wednesday, June 26, 2013 at 10:53 am