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China's Soaring Bank Lending Stands Out in Global Downturn

Wall Street Journal Original article ›

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Bank lending is strong in China with increased lending at levels close to 20%, the level reached in prior years.

Loose monetary policy in China in 2010-2011

03/07/2009

Difficulties of making a soft landing after the huge lending boom in China in 2009-2010 continues into 2011. Inflation and other risks from this lending continue. The burden of large local government debt in China and non-performing loans in the banking system. China's local government debt is estimated to be between 27% of GDP to 42% of GDP. Because of the opaqueness of the financial system the exact amount is not clear and estimates vary.

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