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China regulators tell banks to ramp up lending

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The headquarters of the People’s Bank of China (PBOC), the central bank, is pictured in Beijing, China

China’s central bank has stepped up pressure on lenders with new instructions to grow loans, six bankers with knowledge of the matter said, as the world’s second-biggest economy faces an economic downturn and a plunge in borrowers’ confidence.

The informal message, issued via phone calls over recent months to commercial, rural, and even foreign banks, was to lend more money to productive businesses and put less of it in financial investments, the banking sources said.

The calls, which the sources said came from the People’s Bank of China (PBOC) and in one case the China Banking and Insurance Regulatory Commission (CBIRC), are the latest in a series of official efforts to encourage money out of a financial system awash with cash and into lending that can drive real growth. The china government has more concerns about the state in which they lend money.

Editor at Ghanafuo.com! Bernard Ghartey is a content writer at Ghanafuo.com. I write stories about Entertainment, Lifestyle, Bio, Net worth, and other more. follow my Twitter @bernard_ghartey.

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