Banking managers want more freedom

Curtailing growth
Getty Images via DaylifeThe tightening of lending in China by the financial authorities has gone too far, says a majority of China, according to Bloomberg, quoting a survey by the central bank, who has been in charge of the tightening of those rules.

Policy is ``tight'' or ``too tight,'' according to about two-thirds of 2,900 heads of financial institutions surveyed by the People's Bank of China this quarter. The results, published on the central bank's Web site today, didn't give more detail on reduced expectations for a rate increase next quarter.

By systematically increasing the percentage of deposits banks need to set aside to cover outstanding loans, the available capital has decreased dramatically. The survey seems to be a way to pave the road for a possible freeing up of a part of the deposits later on, especially now the economic growth seems to be slightly under control.