The central bank is also checking to see if troubled assets have been secretly moved off-balance sheet and if loan repayment schedules are reasonable, the source added. China's central bank is investigating the accuracy of NPLs data at the banks due to increasing concerns over the country's financial risks; the probe will focus on whether the NPLs have been mis-categorised as normal loans or special mention loans. The Chinese government has also launched a crackdown against fake loans, with officials targeting individuals and companies that are found to be involved in such activities.
China's central bank is investigating the accuracy of NPLs data at the banks due to increasing concerns over the country's financial risks; the probe will focus on whether the NPLs have been mis-categorised as normal loans or special mention loans. The Chinese government has also launched a crackdown against fake loans, with officials targeting individuals and companies that are found to be involved in such activities.