What’s new: The quantity of nonperforming loans at 24 of China’s listed municipal and rural business banks cumulatively rose by 20.31% year-on-year to 99 billion yuan (about $14 billion) in 2019, largely pushed by dangerous loans at banks in northeastern China and the area together with Beijing and the port metropolis of Tianjin, in keeping with a report printed Friday by world accounting agency PricewaterhouseCoopers (PwC).
Vincent Yao, a monetary companies companion at PwC China, stated throughout a convention the identical day that native governments in China might push for extra mergers and acquisitions between banks if the monetary dangers of regional small-to medium-sized banks hold rising.
The background: A number of banks in China, together with the troubled Baoshang Financial institution Co. Ltd. and Financial institution of Jinzhou Co. Ltd., have carried out reforms following authorities’s tips final 12 months.
On Wednesday, an official on the China Banking and Insurance coverage Regulatory Fee (CBIRC) stated the group will roll out extra measures this 12 months to advertise the reform and restructuring of small and midsized banks.
“Against the backdrop of strengthened (government) efforts, rising (nonperforming loan ratios) indicate that some municipal and rural commercial banks are under greater pressure to deal with bad loans,” stated Shirley Yeung, one other PwC China monetary companies companion.
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