China banks' non-performing loans ratio drops
BEIJING - The total amount and ratio of non-performing loans (NPLs) of China's major domestic financial institutions declined considerably in the first half of this year, official statistics show.
According to figures from the China Banking Regulator Commission (CBRC), the NPL surplus totaled 2.54 trillion yuan by the end of June, a decrease of 93.4 billion yuan from the beginning of the year. The NPL ratio was 19.6 percent, down 3.51 percentage points.
These major financial institutions include four state-owned commercial banks, three policy banks and 11 shareholding commercial banks, whose aggregate loans accounted for 82 percent of the total in China at the end of June.
A CBRC spokesperson said the three types of financial institutions reduced their NPL surplus by 81.1 billion yuan, 6.6 billion yuan and 5.7 billion yuan respectively in the six months, cutting down their NPL ratio by 4.02 percentage points, 1.18 percentage points and 3.51 percentage points.
During the first half of this year, bad debts of state-owned commercial banks totaled 2.0 trillion yuan (US$243 billion), down 81.1 billion ($9.8 billion) from the end of last year; policy banks' bad loans amounted to 334 billion yuan ($40.4 billion), down 6.6 billion yuan (US$798 million); and joint-stock commercial banks 196.7 billion yuan ($23.8 billion), down 5.7 billion yuan ($689 million).
Bad-debt ratios of state-owned commercial banks, policy banks and joint-stock commercial banks amounted to 22.19 percent, 18.61 percent and 9.34 percent respectively, down 4.02, 1.18 and 3.51 percentage points.
Despite the improved quality of loans in the first six months of 2003, the spokesperson said that the total volume of NPLs is still large and the NPL ratio remains high. He attributed the decline of the NPL ratio partly to the soaring total volume of loans in the first six months.
In the second half of 2003, the official said, the CBRC will strengthen its supervision efforts and update the regulatory methods and criteria to prevent and dissolve financial risks the Chinese banking system faces.
(Asia Pulse/XIC) atimes.com |
