(20 November 2012 – China) Non-performing loans (NPL) in China have reached a scary milestone – totalling US$77 billion (A$74 billion) in the third quarter.The China Banking Regulatory Commission (CBRC) reported an increase in NPLs at major state-owned lenders, rural banks and foreign banks in Q3.
CBRC said NPLs rose by US$3.6 billion (A$3.47 billion) from July to September to US$77 billion.
The NPL ratio against total outstanding loans stood at 0.95 percent by the end of September, up by 0.01 percentage point from three months earlier.
It is difficult to measure how big the risks are since banks still have flexibility when classifying loans, CBRC chairman Shang Fulin said the banking system’s risk is under control and the NPL ration remains at a low level.