China Pushes Banks to Boost Lending to Support Economy

Regulators, including the central bank governor of Pangongshan, held a teleconference with financial executives to discuss economic support. They urged banks to increase lending while reducing risks, amid concerns over low loan demand and economic growth. Following a recent MLF rate cut, a further cut to the LPR is anticipated to stabilize the economy, especially given issues in the property market and with trust companies.

What was the main purpose of the teleconference held by the central bank governor of Pangongshan?

• To discuss lending and risk reduction with financial executives

• To announce new interest rates

• To address inflation concerns

• To introduce new banking regulations

What economic issue is highlighted by the low level of new loans in July?

• High inflation rates

• Lack of loan demand and economic growth

• Excessive government spending

• Rising unemployment rates

What action did the central bank take last week that is mentioned in the transcript?

• Raised the interest rates

• Cut the MLF rate

• Introduced new banking regulations

• Increased the reserve requirement ratio

What are the authorities expected to do to stabilize the economy?

• Reduce government spending

• Cut the LPR

• Increase taxes

• Raise interest rates

What issues are contributing to the need for economic stabilization measures?

• High employment rates

• Excessive foreign investment

• Strong currency value

• Problems in the property market and trust companies