US ratings firm Standard & Poor's said it had revised its estimates for the level of bad Chinese banking assets because of a rapid increase in loans, but cautioned that capital injections were needed to reduce bad assets over the near to medium term.
The firm lowered its estimates of impaired assets to 44-45 percent of total loans from almost 50, and the average recovery rate on impaired assets in China to 20 percent from 15 percent.
Total outstanding loans jumped by 23.6 percent year-on-year to RMB 16.73 trillion (US$2 trillion) at the end of October, as banks stepped up lending operations on the back of feverish economic activity.
The non-performing loan ratio of China's four State-owned commercial banks the Industrial and Commercial Bank of China, the Agricultural Bank of China, the Bank of China and the China Construction Bank stood at 21.4 percent, according to official statistics.
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