A new survey shows more than two-thirds of Chinese bankers are not optimistic about China’s current macroeconomic climate.
On June 29, the People’s Bank of China released its latest nationwide Banker Survey Report (pdf), showing various indices about the country’s macroeconomic climate, banking industry, loan demand, and monetary policy.
The central bank report indicated that only 33.1 percent of Chinese bankers considered the country’s current macroeconomic climate “normal” in the second quarter (Q2), a sharp drop of 29 percent from the first quarter.
Meanwhile, 12.7 percent more bankers considered the country’s monetary policy “eased” compared to the previous quarter. In an easing policy environment, the central bank lowers rates to stimulate economic growth. Lower rates lead consumers to borrow more, increasing the money supply….