Chinese banks limited to lend $1.1tln in 2010

Analysts believe $366 billion cut from 2009 cap can be replenished as loans growth remains high.

The report of the Chinese Business News (CBN) on said the 7.5 trillion yuan ($1.1 trillion) figure has been agreed upon at the Central Economic Work Conference, the country's top-level planning meeting for 2010 that concluded earlier this month.

However, industry analysts believed that although the 7.5 trillion yuan credit is lower than the staggering nearly 10 trillion yuan ($1.5 trillion) this year, the loan scale for next year will basically reach this year's level as there is a possibility of a reflow of some 2 trillion yuan ($292.8 million) in loans this year, according to a report in Global Times.

By considering the reflow of about 2 trillion yuan ($292.8 million), the amount of loans next year could be almost the same with that of 2009, according to the report.

Based on the present plan, the amount of the loans for next year will be less than that of this year, but the growth in the number of loans will still remain high, said Xiao Gang, president of the Bank of China.