China's Banks See Jump In Consumer Loans

China's banks are accelerating the approval of consumer loans to offset interest margin pressure as the volume of mortgage loans has shrunk and as authorities encourage lenders to support consumption, China Business News reported. The volatility of equity, bond and property markets in 2022 pushed up households' bank deposits, which led to a narrowing in interest margins, the report said. Competition among commercial banks for consumer loans has pushed interest rates down to 3%-4%. With the boom in consumer loans, the risk that the funds from these consumer loan flows into property market, which has been forbidden, needs to be watched, the report warned.