Lenders' asset quality improving on credit reforms

Two of the largest State-owned commercial banks in China recorded a significant improvement in their asset quality last year, as a combined result of several factors including the adjustment of their credit structures and acceleration of the disposal of nonperforming loans.

Industrial and Commercial Bank of China Ltd has seen a noticeable enhancement of its asset quality, thanks to continuous reforms of its credit mechanism.

The NPL ratio of ICBC, China's largest commercial lender by assets, was 1.55 percent in 2017, down by 7 basis points from the previous year, according to the bank's annual results announced on Tuesday.