2015-02-10

Bad Debts Rising

SCMP: China’s bad loan ratio jumps at end of 2014, much higher than expectations
The mainland banking sector’s non-performing loan ratio jumped to 1.64 per cent at the end of 2014, according to China’s banking regulator, up from 1.16 at the end of the third quarter of the year and marking the biggest quarter-on-quarter jump in the official bad-loan count on record.

...The China Banking Regulatory Commission (CBRC) said in a statement on Friday that the NPL ratio among China’s commercial banks climbed to 1.29 per cent at the end of last year.

“This is much higher than our expectations,” said Rainy Yuan, a Shanghai-based banks analyst at Masterlink Securities. “This kind of jump might indicate that the regulator requested the banks to handle a greater amount of bad debt in the last month of the year.”

5 comments:

  1. I would like to somehow notify the poster of this article that US housing bad debt is over 7%. And a move to 1.64% is made to sound like doomsday has arrived for China. What a laugher. I realize it is a big move up but still a pittance. Let's be real here.

    ReplyDelete
  2. I would like to somehow notify the poster of this article that US housing bad debt is over 7%. And a move to 1.64% is made to sound like doomsday has arrived for China. What a laugher. I realize it is a big move up but still a pittance. Let's be real here.

    ReplyDelete
  3. Not interested in the total amount, yet, but the direction, the point in the cycle.

    ReplyDelete
  4. It is notable to be interested in both for a comparative reality check.

    ReplyDelete
  5. It is notable to be interested in both for a comparative reality check.

    ReplyDelete