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Chinese Banking Industry Saw a Large Number of Nonperforming Loans

Well-known Chinese news site Sina recently reported that, according to the China Banking Regulatory Commission (CBRC), the Chinese banking industry suffered the highest nonperforming loans ratio since 2010. In the first half of this year, the banks accumulated nonperforming loans totaling RMB 1.8 trillion (around US$290 billion), which represents a year-over-year increase of 35 percent. This half-year increase is larger than the increase China saw for the entire year of 2014. Shang Fulin, Chairman of the CBRC, suggested that the banking industry should take the task of controlling the rapidly growing number of nonperforming loans as a top priority task. Risk management and prevention are key to this work.
Source: Sina, August 6, 2015