ICBC avoids risky businesses
(5 April 2006 – China) Industrial and Commercial Bank of China said it will prepare for a billion dollar listing on the Hong Kong stock exchange later this year by putting in processes to avoid a further raft of bad loans.
China is being affected by industries hitting overcapacity and the government has banned construction of more steel and resources plants until the situation improves.
ICBC said it would adjust its policy in line with the new situation and give guidance to branches to "rein in risk from industrial fluctuations". It said it would also exit from high risk loans.
The bank said it kept its ratio of bad loans to four percent at the end of 2005 after curbing loans to aluminium, steel, coal, cement and power businesses over the past two years.
ICBC said it would adjust its policy in line with the new situation and give guidance to branches to "rein in risk from industrial fluctuations". It said it would also exit from high risk loans.
The bank said it kept its ratio of bad loans to four percent at the end of 2005 after curbing loans to aluminium, steel, coal, cement and power businesses over the past two years.
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