Record lending will not increase bad debt, says ICBC

SINGAPORE: Industrial & Commercial Bank of China Ltd (ICBC) Chairman Jiang Jianqing said this year's record lending won't lead to an increase in bad debts in 2010, and predicted loan profitability among Chinese banks will improve.

New loans at China's largest bank will double this year even as credit growth slows in the second half, Jiang told reporters at a briefing in Singapore on Friday. Jiang also said he expects China to maintain its current monetary policy.

ICBC, the world's most profitable bank, extended a record 1.01 trillion yuan ($146 billion) of new credit in the first nine months as it helped finance the country's $586-billion stimulus plan.