New loans at China's big four banks dropped sharply to CNY 168 billion (USD 26.7 billion) in November, reigniting concerns over a credit crunch toward the year-end, according to a newspaper.

 

The total new loans in all lenders last month were between CNY 420 billion and 480 billion, lower than previous market hopes of 500 billion, the 21st Century Business Herald said yesterday, citing an unnamed source in a big state-owned bank.

 

The big four banks lent a total of CNY 220 billion in October.

 

The loans extended by the big four lenders - the Industrial and Commercial Bank of China, China Construction Bank, the Agricultural Bank of China and the Bank of China - normally account for 35 percent to 40 percent of the nation's total lending. 

 

Total new lending may amount to around CNY 8 trillion, said the source.

 

Total lending rose to CNY 7.2 trillion  in the first 10 months of this year, according to data from the People's Bank of China. 

 

Demand from corporations for bank credit weakened in the first six months of this year amid a slowing economy. The new lending last month was mainly driven by rising personal mortgages due to a rebounding property market, the newspaper said.