Chinese banks' bad loans increased for a third straight quarter, the longest streak of deterioration in eight years, highlighting pressures on asset quality and profit growth as the economy weakens.
Non-performing loans rose by 18.2 billion yuan ($2.86 billion) in the three months ended June 30 to 456.4 billion yuan, the China Banking Regulatory Commission said in a statement on its website today. Bad loans surged at all types of banking institutions, including the largest state-owned lenders, rural banks and foreign banks, the regulator said.
Chinese lenders are grappling with rising defaults, weaker loan demand and lower lending profitability after economic growth decelerated for a sixth quarter and the central bank cut interest rates twice this year. Combined net income growth at the nation's 3,800 lenders slowed to 23 percent in the second quarter from 24 percent in the previous three months, the regulator said today.
Continue Reading for Free
Register and gain access to:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world case studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.