J.P. Morgan agrees, saying that together with the RRR cuts, «the seeming start of a new cycle of public spending and consumer stimulus should help to
boost loan demand in the economy.»
Not exact matches
«Banks hope to lend early to get early returns... private investment and manufacturing investment are picking up due to firmer global
demand (and) household
loans could be
boosted by property
demand,» said Nie Wen, an economist at Hwabao Trust in Shanghai.
Banks will experience an increase in corporate
loan demand, as firms
boost capital expenditures.
Lowering taxes provides a fiscal
boost, stimulating economic activity and adding to inflationary pressure, all of which encourages higher
loan demand, higher interest rates and consequently higher margins for the banking sector.