Banking News
- Bankers' confidence dives to record low
Date: 21-Sep-2007 Sources: (Shenzhen Daily)
CHINA'S index of bankers' confidence dropped to a record low in the third quarter as worries over economic overheating mounted and the prospect of further tightening steps grew, the central bank said Thursday.
The index fell to 21 percent, its lowest level ever, after diving to 36.7 percent in the second quarter. It stood at 60.6 percent in the first three months of the year, the People's Bank of China (PBOC) said on its Web site.
The central bank did not say why it expresses the results as percentages rather than points, the usual measure of index levels.
The central bank has raised interest rates five times and increased banks' reserve requirements seven times this year to rein in liquidity and credit it fears could feed wasteful investment.
The index is based on a survey of some 2,850 bank branches carried out by the PBOC and the National Bureau of Statistics.
The central bank did not say whether the survey was conducted before or after the latest interest rate rise, which was announced last Friday.
Households expect the nation's inflation to accelerate in the fourth quarter, another central bank survey showed.
About 61 percent of the 20,000 households in 50 cities across China said they expect consumer prices to rise further, according to the survey. China's inflation rate in August accelerated to a 10-year high of 6.5 percent.
The bank also said confidence among company executives fell in the third quarter on concern the economy will overheat.
A survey of 5,635 firms showed that entrepreneurs' confidence fell by 6.4 percentage points between July and September to 77 percent from the previous quarter.
Sponsor Results:
