Comment: Chinese Banks Stop Lending Due To Liquidity Freeze

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Chinese Banks Stop Lending Due To Liquidity Freeze

Not unexpectedly following news that various retail and online banking services had been impaired in the early part of the week at China's biggest banks, now Caixin reports that banks are simply shutting lending to both businesses and individuals.

From Caixin:

A number of banks have temporarily halted lending to businesses and individuals apparently due to mounting pressure from liquidity shortages.

They include some branches of Bank of China (BOC) and Industrial and Commercial Bank of China (ICBC), sources from the two banks said.

The bank was already having a hard time keeping up with deposit-to-loan ratio requirements even before the liquidity shortages hit, not to mention executives' recent determination to sort out the bank's liquidity management and control loans.

BOC plans to resume lending on July 15, he said.
http://www.zerohedge.com/news/2013-06-26/chinese-banks-stop-...