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31 Mar 2014
Chinese banks sees surge in bad loans - FT
FXStreet (Bali) - The Financial Times reports that the rate of bad loans in China’s largest banks have more than doubled since last year, another sign that the economy continues to slow, unable to match the strong growth generated in recent years.
From the FT: "The five biggest Chinese banks, which account for more than half of all loans in the country, removed Rmb59bn ($9.5bn) from their books in debts that could not be collected, according to their 2013 results. That was up 127 per cent from 2012, and the highest since the banks were rescued from insolvency, recapitalised and publicly listed over the past decade."
The FT quoted Liao Qiang, China banks analyst at Standard & Poor’s, as saying "lenders appeared to have adequate provisions for a downturn, but some banks fear that if the NPL (non-performing loan) ratio is undesirably high, there may be some negative publicity, and so they are more active in write-offs.”
From the FT: "The five biggest Chinese banks, which account for more than half of all loans in the country, removed Rmb59bn ($9.5bn) from their books in debts that could not be collected, according to their 2013 results. That was up 127 per cent from 2012, and the highest since the banks were rescued from insolvency, recapitalised and publicly listed over the past decade."
The FT quoted Liao Qiang, China banks analyst at Standard & Poor’s, as saying "lenders appeared to have adequate provisions for a downturn, but some banks fear that if the NPL (non-performing loan) ratio is undesirably high, there may be some negative publicity, and so they are more active in write-offs.”