China Center Chart of the Week: Rise in interbank lending highlights China’s liquidity risks

  • Authors:
    Andrew Polk
  • Publication Date:
    June 2013
  • Report Number:
    China-COTW-6-3-13

This China Center members-only chart shows the Chinese banking system’s monthly new claims on the corporate and household sectors (i.e. loans into the real economy) as well as new claims on depository corporations and financial institutions (i.e. interbank lending). Recently, turnover in interbank lending has risen rapidly, regularly outpacing credit creation in the real economy by a substantial amount. Additionally, lending in the interbank market has become increasingly volatile, mirroring recent movements in the deposit base.

While the sheer size of growth in the interbank market is daunting, the large monthly turnover is potentially even more dangerous.  Please download the full chart for a complete explanation.

Pricing

China Center Publications (1 pgs)
Members: Sign in to see if this product is complimentary with your membership.
Non-members: Not available
(Find out how to become a member
)
  • Human Capital
  • Back to Top