Chinese commercial banks’ average non-performing loan ratio hit 1.59% at the end of September, their highest level in six years, Reuters reported, Citing a statement from Liao Yuanyuan, deputy head of policy research at the China Banking Regulatory Commission. Industrial and Commercial Bank of China, the country’s largest lender by assets, booked a bad-debt ratio of 1.44% for the period, up from 1.4% at the end of June. China’s other major state-owned lenders also reported higher non-performing loan ratios. The average provision coverage ratio for commercial lenders had also dropped to 167.7% by September’s end, close to the minimum of 150% required by the commission to protect against future losses.
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