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China Bad Loans, Rising Risks From China Bad Loans South China Morning Post
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Chinas top banking regulatory official said on thursday that the countrys banks have to deal with 34 trillion yuan us4895 billion worth of non performing loans in 2020 flagging a big risk. As the pandemic batters economies globally the bank of china which is the most international of chinas large state banks said it would keep guarding against global financial market risks in the second half. About two thirds of the countrys 80 million small businesses including many mom and pop shops lacked access to loans as of 2018 according to chinas national institution for finance.
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The peoples bank of china in shanghai is monitoring the level of bad loans at banks across the country.
Quick medical loans. China tightens bad loan recognition rules september 13 2018 by cindy li and walter yao for those who follow chinas banking sector closely credit quality has always been a top regulatory concern. Is ready to set aside more funds for bad loans in anticipation of higher defaults due to the impact of the coronavirus disease 2019 or covid 19 pandemic. The results highlight the impact of the pandemic and the economic slowdown on chinese banks that bucked the first quarter global trend with higher profits and steady bad loans.
In the official statistics of the chinese government the bad loan ratio of all commercial banks rose from 10 at 2011 year end to 19 at the end of september 2019. Bad debt at chinese banks climbed in the first quarter even as lenders deferred payments on and rolled over a combined 15 trillion yuan 212 billion in loans after the coronavirus outbreak. Chinas financial regulator warned over the weekend that commercial banks could experience a big jump in bad loans as the coronavirus pandemic exacerbated a slowdown in the countrys economic.
Foreign businesses with experience in managing distressed assets have expressed interest in being involved in the resolution of bad loans in china. About two thirds of the countrys 80 million small businesses including many mom and pop shops lacked access to loans as of 2018 according to chinas national institution for finance.
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