Chinese commercial banks’ non-performing loan (NPL) ratio reached a 10-year high of 1.89% at the end of 2018. Separate from NPLs, “special mention” loans, or lending potentially at risk of becoming non-performing, rose to 3.4 trillion yuan by end-December, accounting for 3.16 percent of the total loan volume for commercial banks, Liu said. 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. A man walks past a branch of China Construction Bank (CCB) outside its headquarters on January 30, 2018 in Beijing, China. 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.
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. A man walks past a branch of China Construction Bank (CCB) outside its headquarters on January 30, 2018 in Beijing, China. 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.