Rural NPLs rise, but are not a scare

Credit risk of rural commercial banks is under control, despite a surge in nonperforming loans or NPLs at certain banks, experts said.

Some of last year's surges in NPL ratios of a small number of rural commercial banks came to light this year, with credit ratings of at least six of them cut, according to their disclosures and ratings agencies.

In China, rural commercial banks are usually small-scale lenders that serve local residents and small businesses, many of whom are focused on agriculture.