20 Jan 2011

China banks lend more than World Bank

The China Development Bank and the China Export Import Bank offered loans of at least $110 bn (£69.2 bn) to governments and firms in developing countries in 2009 and 2010.

chinese-banks

Between mid-2008 and mid-2010, the World Bank's lending arm issued loans of just over $100bn (£63bn). The two Chinese banks do not publish a detailed breakdown of their overseas loans, so this research is based on public announcements about specific deals from them, their borrowers or the Chinese government.

That means the figure arrived at for the amount of Chinese lending is more likely an underestimate than an overestimate because some - more sensitive - loans will not have been made public. The Chinese lenders are so-called policy banks - they have a mandate to further whatever Beijing sees as its national interest.

One of China Development Bank's specific tasks is to try to alleviate and, where possible, eliminate bottlenecks in supplies of raw materials or land for China's economy. It also tries to open up foreign markets for Chinese companies.

BBC News