Reuters
China’s bank regulator warns of rising bad loans due to uneven recovery
Chinese banks are facing the threat of rising bad loans in the future as the current economic recovery is unbalanced and lacks a solid foundation, the country’s top banking and insurance watchdog said on Wednesday. Outstanding non-performing loans in the banking sector stood at 3.5 trillion yuan ($540.79 billion) by end of June, an increase of 108.3 billion yuan from the beginning of the year, while the bad loan ratio declined to 1.86%, Liu Zhongrui, an official at the statistics department of China Banking and Regulatory Commission (CBIRC), told reporters in Beijing. China has implemented monetary and fiscal policies since last year to support an economy jolted by the COVID-19 pandemic.
