Questions about GDP and credit size

I. Problems about GDP and credit size

1. As far as I know, there is no optimal ratio (credit to GDP ratio) at the level of economic theory and in the field of national policy making.

2. To discuss whether a high credit balance is good or bad. Our concern should be the quality of credit is good or bad. Take the first half of China issued 7.4W billion. For one thing, some of it went into the stock market and the housing market. The difficulty of loan recovery and the possibility of forming bad debts have become greater; secondly, the ratio of lending is unreasonable, and most of the credit is still allocated to large enterprises. The country has been emphasizing the difficulty of financing small and medium-sized enterprises has not been well resolved.

3. The risks are definitely there: once investment and credit slow down, it is a big question whether growth can be sustained.

I'm going to take the GDP for '08 and do an analysis here.

1, according to the 08 GDP weight 30W billion, then 301.08 = 32.4W billion, half a year is 16.2W billion.

2, the first half of the credit 7.4W billion, the whole year of 08 is 508.7W billion (half a year 2.5W billion), that is, the first half of the credit is 4.9W billion more than previous years.

Second, how is the balance of RMB deposits and loans included in GDP accounting?

Hello! Glad to answer your question:

How is the balance of RMB deposits included in GDP accounting? In general, the balance is included in the accounting of GDP, it is an accounting job, that is, we say a problem of exchange rate

Third, the impact of deposit and loan balances on gdp

It is through the promotion of investment to realize. Banks can promote economic growth by converting funds into expenditure on economic activities through loans, and borrowers can use loans to purchase goods and services, thereby increasing consumer spending. The impact of deposit and loan balances also relates to monetary policy, inflation and financial stability.