Chinese banks’ bad loans are increasing and are largely underestimated by regulators, according to a recent survey, while asset management companies (AMCs) are taking a more prudent approach to bank bailouts amid a sluggish economy, Caixin reports. China’s non-performing loan ratio will reach 3% by the end of this year, according to a recent survey of more than 200 bankers and asset managers conducted by state-owned China Orient Asset Management. More than 20% of the respondents believed the ratio will hit 4%. The unofficial estimate is higher than the figure released earlier this month by the China Banking Regulatory Commission (CBRC), which said bad loans had increased to more than 1.49 trillion yuan ($216 billion), with a bad-loan ratio of 1.76% by the end of the third quarter.
You must log in to post a comment.
Yes, I would like to receive emails from China Economic Review. (You can unsubscribe anytime)
Copyright © 2018 SinoMedia Group Limited All rights reserved