China January bank loans reach record 5.13 trillion yuan

In January, Chinese banks extended a record 5.13 trillion yuan ($706.40 billion) in new loans, significantly exceeding analysts' expectations and more than quadrupling December's figures as the central bank aims to support a struggling economic recovery. This surge in lending comes amid uncertainty about domestic demand, despite the economy growing at 5% in 2024, meeting government targets. Meanwhile, Philippine banks also saw a notable increase in lending, reaching a 28-month high with a 12.2% year-on-year growth in December, bolstered by strong consumer demand and production loans. The Bangko Sentral ng Pilipinas reported robust growth driven by credit card and motor vehicle loans, amid steady domestic liquidity growth. Both countries are navigating complex economic landscapes, with China focusing on monetary policy adjustments and the Philippines maintaining cautious interest rates to balance growth and stability. The contrasting lending trends reflect broader regional economic challenges and efforts to stimulate recovery.