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2003-08-07 22:46
BEIJING, Aug. 7 (Xinhuanet) -- The total amount and ratio of non-performing
loans (NPL) of China's major domestic financial institutions declined
considerably in the first half of this year,official statistics showed Thursday.
According to figures from the China Banking Regulatory Commission (CBRC),
the NPL surplus totaled 2.54 trillion yuan by the end of June, a decrease of
93.4 billion yuan from the beginning of the year. The NPL ratio was 19.6
percent, down 3.51 percentage points.
These major financial institutions include four state-owned commercial
banks, three policy banks and 11 shareholding commercial banks, whose aggregate
loans accounted for 82 percent of the total in China at the end of June.
A CBRC spokesman said the three types of financial institutionsreduced
their NPL surplus by 81.1 billion yuan, 6.6 billion yuan and 5.7 billion yuan
respectively in the six months, cutting down their NPL ratio by 4.02 percentage
points, 1.18 percentage points and 3.51 percentage points.
Despite the improved quality of loans in the first six months of 2003, the
spokesman said that the total volume of NPL is still large and the NPL ratio
remains high.
He attributed the decline of the NPL ratio partly to the soaring total
volume of loans in the first six months.
In the second half of 2003, the official said, the CBRC will strengthen its
supervision efforts and update the regulatory methods and criteria to prevent
and dissolve financial risks the Chinese banking system faces. Enditem
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