China’s banking regulator is planning stress tests at banks amid rising non-performing loan ratios, Reuters reported, citing Chinese media. “All (China Banking Regulatory Commission) offices, supervisory departments, must organize stress tests of banking institutional organizations in a timely manner so as to analyze the impact of unfavorable situations in individual banks and the banking system and urge banking financial institutions to make emergency plans,” the regulator was quoted by The Shanghai Securities News as saying in guidelines sent to banks in March. Chinese banks’ NPL ratio rose to its highest level in two years in late 2013.
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