Banks in Shanghai, China's financial center, saw RMB-denominated deposits increase substantially and RMB loans grow at a slower pace in February.

According to the Shanghai headquarters of the People's Bank of China, the central bank, the city's banks drew deposits of 165.16 billion yuan (23.3 billion US dollars) last month, a record high and an increment of 149.26 billion yuan, or 339 percent, over the same month of last year.

Industry insiders attributed the substantial growth largely to hikes of interest rates and lackluster of stock and property markets.

Foreign-funded financial institutions in Shanghai drew foreign-currency-denominated deposits of 520 million US dollars, up 460 million dollars.

February saw Chinese banks in the city made only 6 million yuan in loans for individual home buyers, down 200 million yuan from a year earlier. Foreign-funded banks' loans for the same purposes stood at 170 million yuan, down 110 million yuan.

The decline was ascribed to shrinkage in real estate trading and less supply of newly built commercial housing.

(Xinhua News Agency March 15, 2008)