Regulators seek changes in bad debt ratio

China's banking and insurance regulators at the local level are encouraging banks to count loans overdue by 60 days or more as nonperforming loans, with the aim of better disclosing the risk situation of the banking sector and urging banks to further improve asset quality.

Some regulatory authorities at the local level have requested banks to recognize loans overdue by 60 days or more as non-performing loans, which is not yet a formal regulatory requirement, reported the Beijing-based China Securities Journal.

Currently, the China Banking and Insurance Regulatory Commission requires banks to include loans overdue by 90 days or more in NPLs.