Given the previous misguided stimulus efforts in China, it is not surprising to discover Chinese Banks’ Bad Loans Rise in Fourth Quarter.
Chinese commercial banks’ bad loans increased in the fourth quarter of last year, highlighting pressures the lenders face in maintaining asset quality as the economy slows.
Non-performing loans rose 20.1 billion yuan ($3.2 billion) to 427.9 billion yuan as of Dec. 31, the China Banking Regulatory Commission said in a report on its website today. Bad loans accounted for 0.96 percent of total lending, up from 0.95 percent in September and 0.17 percentage point lower than a year earlier.
Chinese banks are struggling to keep bad loans in check as the country’s economic expansion slows and the housing market cools under government curbs. Lenders’ non-performing loan ratio had not increased quarter-on-quarter since the end of 2005, according to data compiled by Bloomberg.
China Cuts Bank Reserve Requirements
Bad loans or not, in an attempt to keep its faltering economy together, China Cuts Bank Reserve Requirements.
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