China banks' interbank lending falls for first time since 2010

Bloomberg carried an article today, citing that Chinese banks’ interbank lending for the first time in seven years as the authorities’ campaign to curb risks in the $40 trillion financial system started to show its results.

Key Points:

The China Banking Regulatory Commission (CBRC) disclosed at a press conference on Friday, the balances of both interbank assets and liabilities at the end of June declined by 1.8 trillion Yuan ($270 billion) from the beginning of the year.

Entrusted loans -- lending between corporates with banks as middlemen -- declined for the first time since 2008 in April and continued to fall in the next two months, CBRC noted.