A prominent Chinese economist surveying business outside Beijing last month was taken aback when a provincial governor confided in him his greatest political achievement for the year. It wasn't anything that he had expected. The governor didn't cite cleaner drinking water, a drop in the crime rate, or even the conventional benchmark for local leaders in China, speedier economic growth.

According to the economist who told me the story this week, the governor's chest swelled on news that bank lending in his province had outpaced the national average. After local banks lent more money in the first quarter of this year than for the whole of 2008, the governor has clearly been presiding over an expansion of financing at warp speed.

For the rest of the world, the way that Chinese banks have sent money flying out the door has provided a reminder not just about the enduring clout of the state, which formally owns the banks. China's ability to reflate its economy says much more about the Chinese Communist party and the power it holds in reserve to handle crises such as the global economic slump.