Analysis

Bad Loans
 
March 12, 2018

On the face of it, China’s banks look remarkably robust. By international standards, China’s nonperforming loan (NPL) ratio is still incredibly low. After gradually rising since 2012, the NPL ratio peaked at 1.76% outstanding loans at the end of September 2016, before leveling off at 1.74% where it has remained ever since. At 1.74%, it is roughly in line with… READ MORE


Bad Loans
 
Provincial NPL
 
Bad Banks
 
March 12, 2018

In 2014, the China Banking Regulatory Commission (CBRC) started approving the establishment of local asset management corporations (AMCs)—otherwise known as bad banks—to compete alongside the Big Four AMCs (Cinda, Huarong, China Orient, and Great Wall) that had been operating at the national level since 1999. Although the new provincial AMCs were granted the right to buy batches of nonperforming loans… READ MORE


Bad Loans
 
March 12, 2018

On the face of it, China’s banks look remarkably robust. By international standards, China’s nonperforming loan (NPL) ratio is still incredibly low. After gradually rising since 2012, the NPL ratio peaked at 1.76% outstanding loans at the end of September 2016, before leveling off at 1.74% where it has remained ever since. At 1.74%, it is roughly in line with… READ MORE


Bad Loans
 
Provincial NPL
 
Bad Banks
 
March 12, 2018

In 2014, the China Banking Regulatory Commission (CBRC) started approving the establishment of local asset management corporations (AMCs)—otherwise known as bad banks—to compete alongside the Big Four AMCs (Cinda, Huarong, China Orient, and Great Wall) that had been operating at the national level since 1999. Although the new provincial AMCs were granted the right to buy batches of nonperforming loans… READ MORE