Pan Gongsheng: Slower loan growth with improved quality may become one of the new norms of macroeconomic operation.

On September 16, Qiushi published a signed article by Pan Gongsheng, Governor of the People's Bank of China, titled "Deeply Understanding the Changes in China's Financial Structure and Enhancing the Adaptability of Financial Services to the Real Economy." It noted that slower loan growth with improved quality may become one of the new norms of macroeconomic operation. Among the current loan balance of more than 280 trillion yuan, loans to real estate and local government financing vehicles still account for a relatively large share. These sectors are not only no longer growing, but are actually declining. From 2025 to the first half of 2026, the outstanding balance of real estate loans fell by more than 2 trillion yuan cumulatively. Loans in other sectors must first fill this decline before they can bring about growth in the total. As the economic structure transforms and the credit structure changes, the credit growth needed by the real economy is also changing. It is very difficult, and also unnecessary, for total credit to maintain its past growth rate. For supporting economic growth, revitalizing inefficient existing loans and adding new loans are essentially the same in significance.