Bad loans in China’s commercial banking sector grew 11% in the second quarter to a total of RMB1.09 trillion (US$173 billion), Reuters reported, citing an announcement from the China Banking Regulatory Commission. The average non-performing loan ratio of mainland commercial banks rose 0.11% in the second quarter to 1.5% at end of June, the commission said. The largest commercial banks are also setting aside more cash as they prepare for more loans to turn sour: Loan loss reserves at the end of the second quarter amounted to RMB2.17 trillion, an increase of RMB83.5 billion over the end of the first quarter.
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