China’s Bad Loans Rise to Highest in a Decade as Economy Slows
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Nonperforming loans jumped by 51% last year from end of 2014
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Banks’ ability to absorb potential losses weakens, data shows
Soured loans at Chinese commercial banks rose to the highest level since June 2006 as the nation’s economic expansion slowed to the weakest pace in a quarter century.
Nonperforming loans jumped 51 percent from a year earlier to 1.27 trillion yuan ($196 billion) by December, data from the China Banking Regulatory Commission showed on Monday. The bad-loan ratio climbed to 1.67 percent from 1.25 percent, while the industry’s bad-loan coverage ratio, a measure of its ability to absorb potential losses from soured credit, weakened to 181 percent from more than 200 percent a year earlier. The lenders’ core Tier-1 capital ratio improved to 10.91 percent from 10.56 percent, the data show…
China’s Bad Loans Rise to Highest in a Decade as Economy Slows
