Oct
30
Chinese Banks’ ‘Scramble’ for Profit Sees Bad-Loan Buffers Slide
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Loan-loss coverage ratios for two big banks are below minimum
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ICBC may face hit to profit if pressed to lift coverage ratio
Two of China’s biggest banks, Industrial & Commercial Bank of China Ltd. and China Construction Bank Corp., are testing their regulator’s tolerance by protecting profits at the expense of bad-loan buffers.
ICBC and Construction Bank both reported loan-loss coverage ratios below a regulatory minimum of 150 percent of existing nonperforming loans when they disclosed third-quarter earnings…
Chinese Banks’ ‘Scramble’ for Profit Sees Bad-Loan Buffers Slide
