CHINESE banks made 1.37 trillion yuan (US$211.23 billion) in new local-currency loans in March, beating analyst expectations, as the central bank seeks to keep policy accommodative to underpin the slowing economy.

    The People’s Bank of China (PBOC) has been trying to channel more credit into the real economy while refraining from excessive policy loosening, which could put pressure on the yuan and fan asset bubbles.

    The central bank said the broad M2 money supply measure (M2) grew 13.4 percent in March from a year earlier, missing forecasts of 13.5 percent but quickening from February’s 13.3 percent.

    Total social financing, another important indicator of China’s credit expansion, rose to 2.34 trillion yuan in March from 780.2 billion yuan in February.

    The PBOC is aiming for annual M2 growth of around 13 percent this year and growth in total social financing of around 13 percent.

    Outstanding yuan loans grew 14.7 percent by month-end on an annual basis, versus expectations of 14.5 percent.

    Chinese banks’ outstanding foreign-currency deposits rose to US$666 billion at the end of March from US$655.2 billion at the end of February, central bank data showed.

    Analysts expect the PBOC to loosen policy further to help achieve the government’s economic growth target of 6.5 percent to 7 percent this year.(SD-Agencies)