China NPLs Highest Since 2009
World Economy

China NPLs Highest Since 2009

Non-performing loans of China’s commercial banking sector rose to 1.81% of total lending at the end of the second quarter, the highest since the global financial crisis in 2009, the country’s top bank regulator said.
Shang Fulin, chairman of the China Banking Regulatory Commission, urged banks to elevate risk management to a “more prominent” place and take measures to “rein in the rapid rise of non-performance loans” at the regulator’s half-year meeting, according to a statement on the CBRC’s website, Reuters reported.
At the end of March, non-performing loans were 1.75% of commercial banks’ lending. The build-up of troubled credit at Chinese lenders has so far shown no sign of abating as the world’s second largest economy continues to battle problems such as high leverage of its corporate sector and excess industrial capacity.
Shang also told banks to increase their ability to recover and write-off troubled assets, and said China will expand its pilot scheme of NPL securitization to include more financial institutions. He did not disclose the total volume of NPLs at the end of June.
He urged China’s asset management companies, which handle distressed debt from banks, to increase their ability to offload batches of non-performing assets more efficiently.
Outstanding bank loans grew to 106.69 trillion yuan ($15.97 trillion) at end-June, up 13% from a year earlier, he added. The loan-provisioning ratio for banks stood at 161.3% at the end of June, while the capital adequacy ratio for major banks amounted to 13.2%, Shang said, without providing details.


Short URL : http://goo.gl/PK047E
  1. http://goo.gl/XEBjL5
  • http://goo.gl/Z9O4kz
  • http://goo.gl/2fJ4ks
  • http://goo.gl/o0npuL
  • http://goo.gl/Vh9BIa

You can also read ...

Dealers and investors are still vulnerable to the kind of rapid, wholesale dumping of assets that sank Lehman.
These days, it’s virtually impossible to become a bona fide...
BIS says the global debt may be understated by $13 trillion.
Global debt may be under-reported by around $13 trillion...
Japan Leads Bitcoin Market
Japan has once again become the largest Bitcoin exchange...
Critics Comment on Reforming US Business Taxes
Some critics argue that reforming business taxes in the United...
Algeria Plans to Plug Budget Deficit
Algeria’s prime minister laid out a sweeping plan to plug the...
ECB Forecasts Slump in Eurozone Inflation
Inflation in the eurozone will slump in early 2018, the...
Economic growth has halved from last year to about  0.3% in H1 of this year.
The average UK asking price for a home coming onto the market...
Strong Growth to Ease France’s Budget Balancing Act
France’s economic recovery is strong enough for the government...