MoneyandCreditMaintainRapidGrowth .pdf

Money and Credit Maintain Rapid Growth
In the first three quarters of 2009, in an effort to implement the
decisions of the CPC Central Committee and the State Council on macro
regulation, the PBC adopted moderately loose monetary policy and
strengthened financial support for economic growth. As a result, money
and credit maintained rapid growth and performance of the financial system
was stable.
1. Money supply grows 29.31%
At end-September 2009, broad money (M2) stood at RMB 58.54 trillion,
increasing 29.31% year on year, up 11.49 and 0.78 percentage points from
the end of last year and the end of last month respectively. Narrow money
(M1) registered RMB 20.17 trillion, rising 29.51% year on year, up 20.45
and 1.79 percentage points from the end of last year and the end of last
month respectively. Cash in circulation (M0) grew 15.96% year on year to
RMB 3.68 trillion. Net cash injection in the first three quarters totaled
RMB 256.9 billion, up RMB 96.5 billion year on year.

2. RMB loans increase 34.16%
At end-September, outstanding RMB loans reached RMB 39.04 trillion, up
34.16% year on year, accelerating by 15.43 percentage points year on year
and by 0.05 percentage points month on month. In the first three quarters,
RMB loans increased by RMB 8.67 trillion, up RMB 5.19 trillion year on
year. By sector, loans to households rose by RMB 1.84 trillion, with
short-term loans and long and medium-term loans increasing by RMB 667.2
billion and 1.17 trillion respectively; loans to non-financial companies
and other sectors increased by RMB 6.83 trillion, with short-term loans,
long and medium-term loans and bill financing rising by RMB 1.44 trillion,
4.30 trillion and 880.3 billion respectively. In September, RMB loans
surged by RMB 516.7 billion.
At end-September, outstanding foreign currency loans of financial
institutions totaled USD 343.3 billion, up 28.34% year on year. Foreign
currency loans increased by USD 99.7 billion in the first three quarters,
up USD 50.5 billion from the same period last year. In particular, foreign
currency loans rose by USD 17.7 billion in September.

At end-September, outstanding RMB and foreign currency loans of financial
institutions added up to RMB 41.39 trillion, rising 33.83% year on year.
RMB and foreign currency loans increased by RMB 9.35 trillion in the first
three quarters, accelerating by RMB 5.64 trillion year on year. In
September, RMB and foreign currency loans registered a RMB 636.8 billion
growth.
3. RMB deposits rise 28.35%
At end-September, outstanding RMB deposits increased 28.35% year on year
to RMB 58.39 trillion, up 8.62 and 0.86 percentage points from the end
of last year and the end of last month respectively. RMB deposits
registered an increase of RMB 11.75 trillion in the first three quarters,
up RMB 5.18 trillion year on year. By sector, household deposits, deposits
of non-financial companies and fiscal deposits grew by RMB 3.80 trillion,
6.64 trillion and 1.03 trillion respectively. In deposits of
non-financial companies, those of enterprises witnessed a RMB 5.60
trillion increase. In September, RMB deposits recorded a RMB 999.2 billion
growth.
At end-September, outstanding foreign currency deposits registered USD
203.2 billion, rising 7.83% year on year. Foreign currency deposits grew
by USD 10.5 billion in the first three quarters, down USD 17.2 billion
year on year. In particular, foreign currency deposits dropped by USD 3.2
billion in the month.
Outstanding RMB and foreign currency deposits of financial institutions
totaled RMB 59.78 trillion with a year-on-year growth of 27.79%. RMB and
foreign currency deposits rose by RMB 11.82 trillion in the first three
quarters, up RMB 5.14 trillion year on year. In September, RMB and foreign
currency deposits increased by RMB 976.6 billion.
4. Inter-bank lending market rates edge up
In September, RMB transactions in the inter-bank lending market amounted
to RMB 13.51 trillion. The average daily turnover reached RMB 587.2
billion, increasing by 29.92%, or RMB 135.2 billion, year on year.
In September, the monthly weighted interest rate for inter-bank lending
averaged 1.27%, up 0.06 percentage points from the previous month. The
monthly weighted interest rate for bond pledged repo averaged 1.28%, up
0.05 percentage points month on month.

5. Official foreign exchange reserves increase 19.26%
At end-September 2009, China’s foreign exchange reserves reached USD
2.2726 trillion, registering an increase of 19.26% year on year. In the
first three quarters, official foreign exchange reserves rose by USD 326.6
billion, a deceleration of USD 50.7 billion year on year. In September,
foreign exchange reserves expanded by USD 61.8 billion. At end-September,
the RMB exchange rate stood at RMB 6.8290 per USD.

Sources and Uses of RMB and Foreign Currency Credit Funds
of Financial Institutions (By Sector)
September 2009
Fund Source
I. Total Deposits

Balance
597810.88

Unit: RMB100 million
Fund Use

Balance

I. Total Loans

413854.83

1.Household Deposits

263825.03

1.Loans to Households

75591.19

(1) Demand Deposits

96067.74

(1) Consumer Loans

49884.15

(2) Time Deposits

167757.29

Short-term
Loans

2.Deposits of Non-financial
Institutions

290189.40

Long and Medium–term
44099.87
Consumer Loans

(1) Deposits of Enterprises and
Public Institutions

263325.20

(2)

Deposits of Government
Agencies and Organizations

Consumer

(2) Business Loans

5784.28

25707.04

26864.20

Short-term Business Loans

19268.02

3.Fiscal Deposits

28318.42

of which
Loans to Farmers

14882.88

4.Other Deposits

15478.03

Long and Medium-term
Business Loans

6439.02

II. Liabilities to International
Financial Institutions
III. Other Items

746.92
-94571.21

2.Loans to Non-financial
Institutions and Other Sectors

338263.64

(1) Short-term Loans and Bill
152992.78
Financing
Short-term Loans

124856.96

Bill Financing
(2)

Long and
Loans

Medium-term

(3) Other Loans
II. Portfolio and Investment

Total

503986.59

28135.82
165999.94
19270.92
87718.83

III. Purchase of Gold

669.84

IV. Assets in International
Financial Institutions

1743.09

Total

503986.59

Notes:
1. Financial institutions referred to in this table include the People's Bank of China, policy banks,
state-owned commercial banks, other commercial banks, urban commercial banks, rural
commercial banks, rural cooperative banks, urban credit cooperatives, rural credit cooperatives,
finance companies, trust and investment companies, leasing companies, Postal Savings Bank,
foreign-funded financial institutions, village and township banks and automotive finance
companies.
2. Household deposits mainly refers to household savings deposits; deposits of non-financial
institutions includes deposits of enterprises and public institutions and deposits of government
agencies and organizations; other deposits includes insurance companies’ deposits in the banking
sector and deposits of non-residents; loans to households includes consumer loans and business
loans; loans to non-financial institutions and other sectors includes loans to non-financial
enterprises, non-profitable institutions serving residents, the general government sector and the
non-resident sector in the national economic system; other loans includes loans to non-residents as
well as financing to enterprises in all forms except loans and bill financing.
3. Purchase of gold and silver, formerly an item under fund use, has been renamed purchase of gold.

Sources and Uses of RMB and Foreign Currency Credit Funds
of Financial Institutions
September 2009
Fund Source

Balance

I. Total Deposits
1.Deposits of Enterprises
Public Institutions

597810.88
and

Unit: RMB100 million
Fund Use

I. Total Loans

Balance
413854.83

212041.49

1.Short-term Loans

150334.12

(1) Demand Deposits

126396.44

2.Long and Medium-term Loans

222188.25

(2) Time Deposits

85645.05

3.Entrusted and Trust Loans

4617.11

2. Savings Deposits

259615.94

4.Bill Financing

28135.82

(1) Demand Deposits

96282.51

5.Other Loans

8579.52

(2) Time Deposits

163333.43

3.Entrusted and Trust Deposits
4.Other Deposits
II. Liabilities to International
Financial Institutions
III. Other Items

5505.37
120648.07

II. Portfolio and Investment

87718.83

III. Purchase of Gold

669.84

IV. Assets in International
Financial Institutions

1743.09

746.92
-94571.21

Total

503986.59

Total

503986.59

Note:
1. Financial institutions referred to in this table include the People's Bank of China, policy banks,
state-owned commercial banks, other commercial banks, urban commercial banks, rural commercial
banks, rural cooperative banks, urban credit cooperatives, rural credit cooperatives, trust and investment
companies, finance companies, leasing companies, Postal Savings Bank, foreign-funded financial
institutions, village and township banks and automotive finance companies.
2. Purchase of gold and silver, formerly an item under fund use, has been renamed purchase of gold.

Sources and Uses of RMB Credit Funds of Financial Institutions (By Sector)
September 2009
Fund Source
I. Total Deposits

Balance
583931.16

Unit: RMB100 million
Fund Use

Balance

I. Total Loans

390407.85

1.Household Deposits

259919.05

1.Loans to Households

75561.16

(1) Demand Deposits

94787.90

(1) Consumer Loans

49854.13

(2) Time Deposits

165131.15

Short-term
Loans

2.Deposits of Non-financial
Institutions

283196.27

Long and Medium-term
Consumer Loans

(1) Deposits of Enterprises and
Public Institutions

256332.08

(2)

Consumer

(2) Business Loans

5761.90
44092.22
25707.04

of which
Deposits of Enterprises

234046.81

Short-term Business Loans

19268.02

Demand Deposits

121880.72

of which
Loans to Farmers

14882.88

Time Deposits

112166.10

Long and Medium-term
Business Loans

6439.02

Deposits of Government
Agencies and Organizations

26864.20

2.Loans to Non-financial
Institutions and Other Sectors

314846.69

3.Fiscal Deposits

28318.42

(1) Short-term Loans and Bill
Financing

149075.79

4.Other Deposits

12497.42

Short-term Loans

120985.97

II. Financial Bonds

13204.01

Bill Financing

28089.82

III. Cash in Circulation

36787.89

(2) Long and Medium-term
Loans

159513.91

IV. Liabilities to International
Financial Institutions
V. Other Items

746.92
24793.39

(3) Other Loans
II. Portfolio and Investment

659463.37

81268.13

III. Purchase of Gold

669.84

IV. Purchase of Forex

185374.46

V. Assets in International
Financial Institutions

Total

6256.98

Total

1743.09

659463.37

Notes:
1. Financial institutions referred to in this table include the People's Bank of China, policy banks,
state-owned commercial banks, other commercial banks, urban commercial banks, rural commercial
banks, rural cooperative banks, urban credit cooperatives, rural credit cooperatives, finance
companies, trust and investment companies, leasing companies, Postal Savings Bank, foreign-funded
financial institutions, village and township banks and automotive finance companies.
2. Household deposits mainly refers to household savings deposits; deposits of non-financial institutions
mainly includes deposits of enterprises and public institutions and deposits of government agencies
and organizations; other deposits includes insurance companies’ deposits in the banking sector and
deposits of non-residents; loans to households includes household consumer loans and business
loans; loans to non-financial Institutions and other sectors includes loans to non-financial enterprises,
non-profitable institutions serving residents, the general government sector and the non-resident
sector in the national economic system; other loans includes loans to non-residents as well as
financing to enterprises in all forms except loans and bill financing.
3. Purchase of gold and silver, formerly an item under fund use, has been renamed purchase of gold.

Sources and Uses of RMB Credit Funds of Financial Institutions
September 2009
Fund Source
I. Total Deposits

Unit: RMB100 million

Balance
583931.16

Fund Use
I. Total Loans

390407.85

1. Deposits of Enterprises

205614.73

2. Fiscal Deposits

28318.42

(1) Loans to Industrial
Sector

39194.52

3. Deposits of Government
Agencies and Organizations

26864.20

(2) Loans to Commercial
Sector

19425.04

4. Savings Deposits

255720.11

(3) Loans to Construction
Sector

3832.93

(1) Demand Deposits

95007.51

(4) Loans to Agricultural
Sector

21882.94

(2) Time Deposits

160712.60

(5) Loans to Township and
Village Enterprises

8870.36

5. Agricultural Deposits

13393.52

(6) Loans to Joint Venture
Enterprises

2339.53

6. Trust Deposits

5373.02

(7) Loans to Private Enterprises
and Individuals

6482.09

7. Other Deposits

48647.15

(8) Other Short-term Loans

44245.55

II. Financial Bonds

13204.01

2. Long and Medium-term Loans

210100.53

III. Cash in Circulation

36787.89

3. Trust Loans

4606.23

746.92

4. Other Loans

29428.14

IV. Liabilities to International
Financial Institutions
V. Other Items

24793.39

1. Short-term Loans

Balance

II. Portfolio and Investment

146272.95

81268.13

III. Purchase of Gold

669.84

IV. Purchase of Forex

185374.46

V. Assets in International
Financial Institutions
Total

659463.37

Total

1743.09

659463.37

Note:
1. Financial institutions referred to in this table include the People's Bank of China, policy banks,
state-owned commercial banks, other commercial banks, urban commercial banks, rural
commercial banks, rural cooperative banks, urban credit cooperatives, rural credit cooperatives,
trust and investment companies, foreign-funded financial institutions, Postal Savings Bank,
finance companies, leasing companies, village and township banks and automotive finance
companies.

2. Purchase of gold and silver, formerly an item under fund use, has been renamed purchase of gold.

Sources and Uses of Foreign Currency Credit Funds of Financial Institutions
September 2009
Fund Source
I. Total Deposits

Unit: USD100 million
Balance
2032.47

Fund Use
I. Total Loans

Balance
3433.44

1. Deposits of Enterprises

941.10

1. Short-term Loans

595.74

2. Savings Deposits

570.48

2. Long and Medium-term Loans

1770.06

3. Entrusted and Trust Deposits

19.38

3. Entrusted and Trust Loans

4. Overseas Deposits

141.86

4. On-lending of Funds Raised
Overseas

5. Other Deposits

359.65

5. Bill Financing

II. Overseas Financing

151.51

6. Other Loans

III. Purchase and Sale of Forex

2659.31

II. Portfolio and Investment

944.60

IV. Overseas Inter-bank Transactions

209.65

III. Overseas Inter-bank Transactions

547.65

V. Other Items

-127.24

Total

4925.70

Total

1.59
100.31
6.74
959.00

4925.70

Sources and Uses of RMB Credit Funds of State-Owned Commercial Banks
September 2009
on
Fund Source
I. Total Deposits
1. Deposits of Enterprises
(1) Demand Deposits
(2) Time Deposits

Balance
102670.46
63104.93
(2)
39565.52
(3)
(4)
148184.06
57302.97

(2) Time Deposits

90881.09

5. Other Deposits

1. Short-term Loans
(1)

(1) Demand Deposits

4. Agricultural Deposits

Fund Use

294244.89 I. Total Loans

2. Deposits of Government
Agencies and Organizations 20355.75
3. Savings Deposits

Unit: RMB100 milli

(5)
(6)
(7)

145.81
22888.81

II. Issuance of Financial
Bonds

2142.58

III. Borrowing from the
Central Bank

3.02

Balance
169178.65
44743.04

Loans to Industrial
Sector

22753.11

Loans to Commercial
Sector

3958.48

Loans to Construction
Sector

1500.32

Loans to Agricultural
Sector

444.16

Loans to Township and
Village Enterprises

0.00

Loans to Joint Venture
Enterprises

904.74

Loans to Private Enterprises
1899.93
and Individuals

(8) Other Short-term Loans
2. Long and Medium-term Loans
3. Other Loans

13282.29
111457.47
12978.14

IV. Inter-bank Transactions

21472.49 II. Portfolio Investments

88119.87

V. Other Items

III. Deposits as Required
-19029.37
Reserves

38017.11

IV. Inter-bank Transactions

Total

Total

298833.61

3517.98

298833.61

Notes:

1. Financial institutions referred to in this table include the Industrial and Commercial Bank of
China, Agricultural Bank of China, Bank of China and China Construction Bank.

2. Deposits of government agencies and organizations has been taken out of other deposits to be a
separate item since the third quarter of 2007.

Sources and Uses of RMB Credit Funds of Other Commercial Banks
September 2009
Fund Source
I. Total Deposits
1. Deposits of Enterprises
(1) Demand Deposits
(2) Time Deposits

Balance

(1) Demand Deposits
(2) Time Deposits
4. Agricultural Deposits
5. Other Deposits

Fund Use

106847.66 I. Total Loans
58166.89

1. Short-term Loans
(1)

31928.12
(2)
26238.77

2. Deposits of Government
Agencies and Organizations 3833.52
3. Savings Deposits

Unit: RMB100 million

(6)
(7)

23664.32
(8)
8619.70
(6)
15044.61
(7)
39.02
21143.91

II. Issuance of Financial
Bonds

2499.30

III. Borrowing from the
Central Bank

0.11

Balance
80844.44
33666.17

Loans to Industrial
Sector

11293.49

Loans to Commercial
Sector

3485.59

Loans to Construction
Sector

1408.46

Loans to Agricultural
Sector

65.52

Loans to Township and
Village Enterprises

10.17

Loans to Joint Venture
Enterprises

1265.27

Loans to Private Enterprises
2085.30
and Individuals

(8) Other Short-term Loans
2. Long and Medium-term Loans
3. Other Loans

14052.37
40006.73
7171.54

IV. Inter-bank Transactions

10711.83 II. Portfolio and Investment

21066.86

V. Other Items

III. Deposits as Required
-2040.04
Reserves

13448.34

IV. Inter-bank Transactions

2659.22

Total

Total

118018.86

118018.86

Notes:
1. Other banks include the Bank of Communications, China CITIC Bank, China Everbright Bank,
Huaxia Bank, China Minsheng Banking Corporation, Guangdong Development Bank, Shenzhen
Development Bank, China Merchants Bank, Shanghai Pudong Development Bank, Industrial
Bank, Evergrowing Bank, China Zheshang Bank and China Bohai Bank.
2. Deposits of government agencies and organizations has been taken out of other deposits to be a
separate item since the third quarter of 2007.

Monetary Aggregates
September 2009

Unit: RMB100 million

Balance

Year-on-year Change
(%)

585420.41

29.31

201723.21

29.51

Cash in Circulation (M0)

36787.89

15.96

Demand Deposits

164935.33

32.98

383697.20

29.20

Time Deposits

83668.16

37.05

Savings Deposits

255720.11

24.93

Other Deposits

44308.92

41.80

Money and Quasi-money (M2)
Money (M1)

Quasi-money

Note:
M2 includes margins deposited with securities companies.

Exchange Rates, Gold and Forex Reserves
Item

2009
September

October

November

RMB per SDR (end-period)

10.6128

10.6981

10.8197

RMB per USD (end-period)

6.8323

6.8312

6.829

RMB per USD (average)

6.8320

6.8322

6.8289

Gold Reserves (1 million ounces)

33.89

33.89

33.89

Forex Reserves (USD100 million)

21746.18

22108.27

22725.95

Exchange Rate