Readings: Paulson’s plan, China’s slowdown, Credit growth
- Via Paul Kedrosky, Financial Times: Paulson’s plan was not a true solution to the crisis
- MarketWatch: China’s post-Olympics recovery hopes fading fast
“All signs are pointing towards an across-the-board slowdown in the Chinese economy. The particular worrying signs are rapid cuts in steel prices, surging steel exports, deceleration in electricity consumption growth and weakening coal prices,”
“We have seen quite widely spread month-on-month decline in sales volumes, which could hinder” growth in property development in future, said Lan. “Along with its multiplier impact on the economy, it is very difficult to replace the damage from a slowing property sector.”
“About one-third of corporate loans are pledged by real estate. Any plunge in property prices may create uncertainties for the banking system.”
- Business Standard: Bank credit growth rises 26% despite RBI measures
The Reserve Bank of India (RBI) on Wednesday said the flow of credit from scheduled commercial banks, including regional rural banks, went up by 26 per cent on a year-on-year basis to Rs 24,91,248 crore as of Sepetember 12 this year, as against Rs 19,76,139 crore.
The growth is higher than the 23.4 per cent reported in the corresponding period last year and also more than the 20 per cent non-food credit growth being targeted by RBI this year.The rise in bank credit is attributed to high demand for funds from oil firms and the infrastructure sector.
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