(24 July 2012 – China) China’s fourth largest bank, Agricultural Bank of China (ABC) will not raise equity to cope with a rise in its non-performing loan portfolio.The bank dismissed concerns about its rising non-performing loans and those among other banks.
Board secretary Li Zhenjiang said ABC’s strong balance sheet meets the tougher new government requirements and mitigates against risks.
ABC also has no plans to raise new equity this year nor does it plan to partner with a strategic investor, Li noted.
Although non-performing loans for China’s banks have increased because of a weaker economy, these would not worsen significantly, according to Li.
‘The non-performing loans are low and can be digested by the entire banking sector,’ he said.