Beijing: Chinese banks bad loan ratio has increased by 1.5 per cent at the end of June, 0.11 per cent higher than March with the value of outstanding non- performance loans went up by USD 17.6 billion, the communist giant's banking regulator said.
The ratio was 0.11 percentage point higher than it was at the end of March, with the value of outstanding non-performing loans (NPLs) rising 109.4 billion yuan (USD 17.6 billion) to reach 1.09 trillion yuan (USD 175.53 billion), the China Banking Regulatory Commission (CBRC) said.
An NPL is a loan that is in default or close to being in default.
The CBRC however said the commercial banks' credit risk is "generally controllable" and the lenders' overall capability to offset risks remains stable.
The banks' loan loss provisions, or funds set aside to cover potential loan losses, added 83.5 billion yuan to reach 2.17 trillion yuan by the end of June.
The average capital adequacy ratio, the ratio of a bank's capital to its risk-weighted assets, fell 0.18 percentage point to 12.95 per cent, but the CBRC said the level was still "relatively high, state-run Xinhua news agency reported.
As of the end of June, Chinese banks' total assets grew 12.75 per cent year on year to reach 188.5 trillion yuan, according to the CBRC.
Outstanding loans to the agricultural sector and small and micro businesses grew 11.5 per cent and 15.5 per cent year on year respectively, outpacing average loan growth.
