BEIJING: Agricultural Bank of China will halt all lending to property developers for the remainder of the month, three sources familiar with the decision told Reuters on Wednesday.
The bank, China's third biggest by asset value, will resume lending to developers in September, the sources said
They added that the halt had been ordered by AgBank's management to ensure that its loan-to-deposit structure was properly balanced, adding it was not in response to any regulatory requirement.
Nevertheless, the decision underscores how credit quotas imposed by the banking regulator have narrowed the scope for lending by banks, keeping monetary conditions in China relatively tight, particularly in the property sector.AgBank declined to comment. It was not known whether other banks would follow suit. -- Reuters
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