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Chinese banks lend amount than expected in May, the show is designed to support the efforts of the Chinese economy slowing progress.

The total lending of the bank in May to reach 793 billion yuan (125 billion U.S. dollars), higher than the amount of 682 billion yuan lending in April also exceeded most analysts close to the forecast of 700 billion yuan.

Beijing has through its control of banks to control the economy, the degree of utilization in this area than any other financial or monetary instruments. Economic growth slowed to the lowest in three years on the occasion, Beijing is urging the banks to relax lending restrictions to ensure that enterprises get enough credit. In 2009, when the Chinese go all out against the global financial crisis the occasion, Chinese banks to set off a loan flood exacerbated the concerns of the parties to the bad debt accumulation.

This time, the Chinese government is stifling expected a repeat of such credit feast, do not need to re-launch large-scale stimulus package. But the government also quietly urged banks to provide credit to the state-sponsored project, the Chinese government has launched projects to help maintain the momentum of economic growth.

Kay cast macro (at Capital Economics) analyst Wang Qinwei and Mark Williams (Mark Williams) writes: “For the banks and borrowers will respond to the government’s call to increase the credit-fueled spending the intensity, the answer is clear. ‘ ‘Although the economic data for May is still mixed, but now seems likely economic rebound. ”

Last week, a senior bank executives allegedly said that the supply of credit has become more relaxed.

During the past month have many indications, the Chinese government has shifted more likely to stimulate the policy stance. Chinese Premier Wen Jiabao called for increased investment to support growth, the Commerce Department began the introduction of more consumer subsidies, China’s central bank last Thursday the first cut since 2008.

The industrial output is still weak, but in May there are some signs of stabilization, especially in a substantial increase in imports.

Although the banks to respond positively to the call in Beijing, but yesterday reports indicate that a banker’s personal behavior in a system riddled with corruption, remains a challenge.

China Postal Savings Bank (Postal Savings Bank of China), said this the governor of China’s sixth largest bank by assets “on suspicion of personal economic problems are to assist the departments concerned.

According to the respected financial media financial new network (Caixin) reported, Tao Liming, the Central Commission for Discipline Inspection “double” and the illegal loans. This is the second major investigations involving bank exposure in two weeks, after China Agricultural Bank (Agricultural Bank of China), Yang Kun, deputy governor detained.