Loans to borrowers that have missed a payment at Chinese banks are growing three times faster than those recognized as non-performing, Reuters reported, citing regulatory filings. A growing number of such overdue loans still sit on banks’ balance sheets at full value even after payments have been missed for more than 90 days–the accepted international criteria for a non-performing loan. At 18 listed Chinese banks, overdue loans that had not been properly tallied jumped 57% to RMB645 billion (US$101 billion) in the first half of this year from the end of 2014, while non-performing loans increased just 17% to RMB692 billion, according to a UBS analysis of Chinese banks’ balance sheet data.
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