Key facts
- China's new bank lending in May was 520 billion yuan.
- China's new bank lending in May fell short of forecasts.
- China's foreign exchange reserves rose to $3.442 trillion in May.
- China's foreign exchange reserves increased by $31 billion in May.
- China has bought gold for 19 consecutive months.
- Morocco's private sector credit growth hit 5.3% in April.
- Morocco's private sector credit growth was the strongest since mid-2023.
- Colombia's real bank loan growth slowed to 3.3% in March.
- Colombia's non-performing loan ratio rose to 3.7% in March.
- Saudi commercial banks' claims on the private sector grew 7.2% in April.
- Saudi commercial banks' claims on the private sector reached SAR 3.23 trillion in April.
- Mozambique's private sector credit grew 2.7% in March.
Global credit markets presented a mixed picture in recent economic data. China experienced a shortfall in new bank lending for May, reaching only 520 billion yuan, which missed forecasts and indicated a year-on-year decline. This subdued performance is attributed to weak private demand, particularly within the struggling property sector, despite efforts by the central bank to boost credit flow. In contrast, Saudi Arabia's financial sector showed robust growth, with commercial banks' claims on the private sector expanding by 7.2% year-on-year to SAR 3.23 trillion by the end of April. This growth was primarily fueled by personal and trade loans, although real estate lending saw a decline. Tighter liquidity in Saudi Arabia was noted as credit growth outpaced deposit increases.
Morocco's private sector credit growth accelerated significantly in April, reaching 5.3% year-on-year, marking the strongest expansion since mid-2023. This surge, coupled with a rise in public sector borrowing for local government financing, suggests that Bank Al-Maghrib will likely maintain its current interest rate. Colombia's real bank loan growth, however, decelerated to 3.3% year-on-year in March. While commercial and mortgage lending showed the strongest momentum, and consumer lending contributed positively, the non-performing loan ratio increased to 3.7%, signaling growing financial stress. Mozambique reported a more modest private sector credit growth of 2.7% year-on-year in March, totaling MZN 104.4 billion. Household and trade credit led this expansion, with other sectors remaining subdued, and net credit to the government decreased.
Amidst these credit trends, China's foreign exchange reserves saw an increase in May, rising to $3.442 trillion from $3.411 trillion in the previous period. The People's Bank of China also extended its gold-buying streak to 19 consecutive months, reflecting a sustained strategy of reserve accumulation. The varying credit growth rates across these economies highlight diverse domestic economic conditions and policy responses.