Bad loans at China banks hit decade high as economy slows
Non-performing loans rise 51% from year ago to 1.27t yuan in December; bad-loan ratio climbs to 1.67%
Beijing
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.
Non-performing loans jumped 51 per cent from a year earlier to 1.27 trillion yuan (S$270 billion) in December, data from the China Banking Regulatory Commission (CBRC) showed on Monday. The bad-loan ratio climbed to 1.67 per cent from 1.25 per cent, while the industry's bad-loan coverage ratio, a measure of its ability to absorb potential losses from soured credit, weakened to 181 per cent from more than 200 per cent a year earlier. The lenders' core Tier-1 capital ratio improved to 10.91 per cent from 10.56 per cent, the data show.
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