Smaller banks have lower NPL ratio

(Xinhua)
Updated: 2008-03-14 17:06

The non-performing loan (NPL) ratio of small and mid-sized lenders averaged 2.45 percent last year, financial regulators said on Thursday, as they urged local banks to improve risk controls amid rising market uncertainties.

The figure for smaller lenders was much lower than the 8 percent average for large banks, the China Banking Regulatory Commission (CBRC) said on its website.

Twenty banks had NPL ratios of less than 1 percent.

A combined NPL ratio of 2.96 percent was recorded at the end of December 2006 in China's 12 joint-stock commercial banks.

Some 20 smaller commercial banks have sought qualified institutional investors, involving more than 100 senior domestic and foreign managers.

The CBRC said that small banks should continue to improve corporate governance and beef up asset management and risk control to prevent a resurgence of bad loans as global financial situations soured.


(For more biz stories, please visit Industry Updates)



Related Stories