The banking institutions granted 1.26 trillion yuan new loans over the first quarter of the year. The 13.98 percent year-on-year increase is slightly higher than that in the same period of last year, according to Xinhua.

The China Banking Regulatory Commission (CBRC) regards the rise, albeit fast, as basically reasonable after the various factors were taken into account, including the strict management on capital adequacy, the declining ratio of deposits against the loans, slowdown of new mid and long term loans and accelerated increase in short term credits.

While insisting that China's macro-economy went smoothly with good development momentum for the first quarter of the year, the CBRC also warned against the lingering problems of the surging fixed asset investment, excessive money supply, more marginal growth in loans, and the mix of the foreign trade.

For the second quarter of this year, the CBRC will continue to push the reform of state-owned commercial banks forward, make research on stock holding reform of the Agricultural bank, and closely watch the influence of the world and domestic economic landscape on the banking sector. It also vows to reduce the amount and incidence of non-performing loans and boost the fund-raising of small businesses, consumption credit and intermediary services.

By people's Daily Online