11.11.201910:30:00UTC+00China Bank Lending Declines Sharply In October

China's bank lending declined notably in October, figures from the People's Bank of China showed Monday.

Banks lent CNY 661.3 billion loans in October compared to CNY 1.69 trillion in September. Lending was forecast to fall to CNY 800 billion.

The broad money supply M2 climbed at a steady pace of 8.4 percent in October.

Monetary easing is failing to lift bank loan growth, while fiscal constraints are weighing on broader credit expansion, Julian Evans-Pritchard and Martin Lynge Rasmussen, economists at Capital Economics, said.

The central bank will need to loosen policy more aggressively in the coming months in order to drive a turnaround in credit growth and prevent economic activity from slowing too abruptly, they added.