The Chinese banks have lent over 5.8 billion Yuan in the first five months of this year 2009, which is causing concern in the minds of the government authorities. They fear that the aggressive growth in credit could have been due to wrong funding to real estate and also to the stock market.
There is a strong possibility of the Chinese banks ending up with huge bad debts due to these aggressive lending.
Also the profitability of the Chinese banks could be affected due to slower growth in deposits in the last few months.