Chinese banks' bad loans continue to drop
(Xinhua)
Updated: 2006-05-06 13:56
Bad loans owed to China's commercial banks dropped by 0.6 percentage point in
the first quarter of the year, according to the latest figures from the China
Banking Regulatory Commission (CBRC).
By the end of March, commercial banks operating in China, including foreign
banks, had 1.31 trillion yuan (164 billion US dollars) in bad loans.
Bad loans accounted for 8 percent of the banks' total loans at the end of the
first quarter.
The rate of bad loans for China's commercial banks dropped to below one
percent for the first time.
Bad loans of State-owned commercial banks totaled 1.06 trillion yuan (133
billion dollars) at the end of March, down by 0.7 percentage point from the
beginning of the year.
The rate of bad loans for State-owned commercial banks now stands at 9.8
percent, dropping to less than 10 percent for the first time.
CBRC officials warned that bad loans of the commercial banks may bounce back
as the government continues to pursue policies aimed at restructuring the
economy and cut down on overcapacity in many industries.
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