China's central bank is suggesting lending here in China with the renminbi is growing in a "reasonable range" under the current currency policy.
The comments have come in response to rising market speculation over the slowdown of yuan-denominated loans.
Ma Jun is the Chief economist of the People's Bank of China.
"There are various factors affecting the M2 growth in every single month. Among them are base effects including banks issuing a high concentration of loans to meet their quotas, and the period of granting loans. Excluding those base effects, we find that the M2 growth is still in a reasonable range."
The lending last month dropped to less than 400 billion yuan from June's 1 trillion yuan.
In making the revelation this week, China's central bank says the downturn in lending has been brought on by a sluggish housing market and an overall slowdown of the economy.
