It has been made clear that a slowdown can be seen quite near after wonderful profits recorded for the first quarter by Chinese banks.

After a lending binge which lasted a whole year and thereby record profits for the banks in China, a business slowdown is inevitable as they really need to slow and cool their lending process which was taking place at a breakneck speed and this was also seen as a way to keep the economy of the country’s banks from overheating.

Most of the Chinese lenders posted their best ever rise in quarterly profits for the first quarter and it turned out to be quite a bumper quarter for most of the banks.

The reason for this amazing turn out is probably their new loans that were extended in the year 2009 by about 9.6 trillion yuan which was actually almost double the amount that was extended in the previous year 2008 which was 4 trillion yuan.

It was also reported that a brisk pace was also continued for the new loans which were worth 2.6 trillion yuan for the first quarter.