“The value of precious metals held by China’s biggest lenders surged 66 percent from a year ago as banks lease more gold to customers because tighter borrowing rules make it harder to lend funds. The growth since last year outpaced the gain in benchmark bullion prices, which rose 7.5 percent over the same period. China is seeking to rein in credit by raising borrowing costs and cutting off lending to sectors considered at risk of default amid a property slump and rising number of bad loans. That’s prompting banks to hold more precious metals as they expand their gold-leasing business because it’s not subject to loan caps and is considered off-balance sheet lending, according to Industrial Bank Co.”
Related posts:
Home Lending Plunges to 17-Year Low; Higher Rates Curtail Borrowing
Why Buffalo wings will break your budget in 2013
Up close with the $83 million diamond
Syrian rebels receive UK funding, but no weapons
What Is Middle Class in Manhattan?
Chicago ‘Safe Passage’ routes put to test amid more shootings
Hong Kong protesters back Edward Snowden, denounce allegations of U.S. spying
British PM concedes vote on military action should await UN report
French mother jailed for sending son to school in ‘I am a bomb’ shirt
Fmr. NSA chief: ‘Morally arrogant’ Snowden will probably become alcoholic
More than 1,000 escape in Libya prison break organized by area residents
Palm Beach County teachers seeking gun training, permits in wake of Sandy Hook shooting
Polish PM laments opinion impasse keeping Poland out of Eurozone
Syria, Iran issue first explicit warning to Israel if US attacks
Home-schooling family who fled to U.S. from Germany face deportation by Obama administration