Fitch Ratings says faster growth of broad credit in Q312 was one factor behind the recent improvement in Chinese economic
data. In a comment published today, the agency highlights that, after slowing from Q411 to Q212, broad credit is back on track to surpass CNY17trn (USD2.7trn) in 2012.
Fitch’s measure of broad credit includes shadow and offshore sources omitted from the central bank’s official total societal financing metric.
“This marks the fourth year in a row that net new credit will exceed one-third of GDP,” said Charlene Chu, Head of Chinese
banks’ ratings at Fitch. At current growth rates, by 2013 China’s banking sector assets will have expanded by nearly USD14trn since 2008. This is equivalent to replicating the entire US commercial banking sector in just five years. Such massive balance sheet expansion has limits, according to the agency."