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14 May 2015
China: Reasons behind weak credit data - Nomura
FXStreet (Bali) - As Nomura notes, money and credit data in China surprised on the downside in April, with the bank maintaining its call of further monetary policy easing.
Key Quotes
"The binding loan-to-deposit ratio (LDR) could be one of the main reasons behind the weak loan data, which is aggravated by the changes in deposit components."
"A rising non-performing loan (NPL) ratio and weak demand for loans may have also contributed."
"We maintain our call of further monetary policy easing, and expect the China Banking Regulatory Commission (CBRC) to loosen regulations on the LDR."
Key Quotes
"The binding loan-to-deposit ratio (LDR) could be one of the main reasons behind the weak loan data, which is aggravated by the changes in deposit components."
"A rising non-performing loan (NPL) ratio and weak demand for loans may have also contributed."
"We maintain our call of further monetary policy easing, and expect the China Banking Regulatory Commission (CBRC) to loosen regulations on the LDR."