In its newest audit report, China’s Nationwide Audit Workplace discovered unhealthy loan ratios to be practically twice what some regional banks reported, amongst different violations.
China’s Nationwide Audit Workplace (NAO) has revealed that the unhealthy loan ratios at as much as 16 regional banks had been discovered to be practically twice as excessive as what the lenders publicly disclosed, Caixin experiences.
The typical unhealthy loan ratio of the 43 smaller regional lenders was 2.48% on the finish of the primary quarter, in comparison with 1.43% at China’s ten largest lenders.
Nonetheless, the excellent value of the big banks’ unpaid loans rose 8.26% from the identical time final 12 months.
The Nationwide Audit Workplace additionally uncovered different violations by lenders, similar to illegally charged charges, and the continued apply of linking loan issuance to deposits.
Such practices elevated the price of borrowing for firms by practically CNY 1.Eight billion (USD 255 million), it stated.
The Nationwide Audit Workplace’s newest audit report, out there right here (Chinese language solely), covers information as much as the tip of March 2020.