CBRC offers hope on bad loans

China's banking regulator said on Wednesday that it was willing to consider more targeted and dynamic provision regulations for lenders, amid growing concerns that rising bad loans are eroding the sector's profitability.

The China Banking Regulatory Commission said it was monitoring the provision requirements of banks and will carry out case-by-case studies on individual lenders to help them deal with rising bad loans.

Liao Yuanyuan, deputy director of the policy research bureau at the CBRC, said that the regulator wants to maintain continuity in its regulations. What this essentially means is that, the loan-loss provision ratio, a key measure of banks' risk-control capability, will remain unchanged.