Chinese banks in a pinch as consumer loans fall despite lending push

Published 6 hours ago• 1 minute read

Weak credit demand adds pressure on policymakers dealing with tariff uncertainty

20250519 PBOC

People walk in front of People's Bank of China in Beijing. The central bank recently cut its benchmark interest rate to spur growth amid the trade war with Washington. (Photo by Mizuho Miyazaki)

SHANGHAI -- Despite a record-low interest rate environment, Chinese banks are struggling to boost lending as they confront the country's trade war with the U.S. and other hurdles.

Outstanding yuan-denominated loans at the end of April grew 7.2% year-on-year to 265.7 trillion yuan ($36.9 trillion), according to data published by the People's Bank of China (PBOC). But consumer loans, including mortgages, fell by about 520 billion yuan in April, marking the biggest decline since February 2024. Corporate loans grew by 610 billion yuan, slower than the 860 billion yuan recorded in the same period last year and sharply lower than the 2.84 trilion yuan increase in March.

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