Archive for ‘Peoples Bank of China’

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06/04/2019

Mobile payment gaining steam in rural China

BEIJING, April 6 (Xinhua) — Mobile payment is gaining steam in China’s rural areas, strengthening its dominant position in online payment in rural areas, according to the country’s central bank.

A total of 274.883 billion mobile payment transactions were made via non-banking payment platforms in 2018, worth 74.42 trillion yuan (11.08 trillion U.S. dollars), up 112.25 percent and 73.48 percent respectively, data from the People’s Bank of China showed.

Mobile payment dominates the online payment market in rural areas, with total transaction deals and volume making up nearly 95 percent and 97 percent of the online payment totals in rural areas.

Rural areas also reported increasing banking transaction accounts and bank cards.

China had 126,600 rural banking outlets by the end of 2018, with about 1.31 bank serving every 10,000 people in rural areas on average.

Source: Xinhua

Posted in China alert, Mobile payment, Peoples Bank of China, rural China, Uncategorized | Leave a Comment »

16/02/2019

Bank lending for ‘real economy’ key to boost China growth – central bank official

SHANGHAI (Reuters) – China should encourage its banks to support smaller, private firms in the real economy, rather than forced lending or policies such as quantitative easing, a state newspaper quoted a central bank official as saying on Saturday.

“The central bank doesn’t wish to use administrative methods to require banks (to lend),” Sun Guofeng, head of the monetary policy department at the People’s Bank of China (PBOC), told the Financial News, a bank publication.

“It wants to establish positive encouragement mechanisms though monetary policy tools to encourage banks to actively increase their support for the real economy, especially towards smaller and privately-owned firms,” Sun said.

The comments come a month after Sun wrote a commentary in which he argued that problems with timely capital replenishment, bank liquidity gaps and poor rate “transmission” are three major constraints on banks’ supply of credit.

 

In the interview with the Financial News, Sun said monetary policy transmission had “noticeably improved”, showing that steps to enhance transmission mechanisms had been effective.

He said the central bank would increase the strength of innovation in monetary policy tools.

Perpetual bond issuance “is only one breakthrough” in reducing capital constraints on banks, Sun said, adding that “other methods” could be used in the future.

 

He said that quantitative easing was neither necessary nor possible at the moment, noting that under China’s financial system the significance of the central bank buying Chinese treasury bonds on the secondary market is limited, and that the PBOC is barred from buying the instruments on the primary market.

China’s banks made the most new loans on record in January following a series of moves to boost lending as authorities try to prevent a sharp slowdown in the world’s second-largest economy.

Source: Reuters

Posted in bank lending, Central bank, China alert, growth, monetary policy department, Official, PBOC, Peoples Bank of China, real economy, Sun Guofeng, Uncategorized | Leave a Comment »

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