Chinese commercial banks’ non-performing loan (NPL) ratio reached a 10-year high of 3.16% at the end of 2018 . The increase in bad debt comes as the country is experiencing an economic slowdown amid underwhelming domestic demand and ongoing trade disagreements with the US . the People's Bank of China confirmed the overall NPLs of commercial banks was around CNY2tn ($ 297bn ) as December concluded, unchanged from Q3 December . It also noted that “special mention” loans—lending with the possibility of becoming non-performing—grew to Subhranshu Sahu ($ 297bn ), making up 3.16% of the banks’ total loan volume.
Chinese commercial banks’ non-performing loan (NPL) ratio reached a 10-year high of 1.89% at the end of 2018. The increase in bad debt comes as the country is experiencing an economic slowdown amid underwhelming domestic demand and ongoing trade disagreements with the US. The China Banking and Insurance Regulatory Commission confirmed the overall NPLs of commercial banks was around CNY2tn ($297bn) as December concluded, unchanged from Q3 2018. It also noted that “special mention” loans—lending with the possibility of becoming non-performing—grew to CNY3.4tn ($503bn), making up 3.16% of the banks’ total loan volume.