Nonperforming loans may eclipse the level of 2008
By Jiang Xueqing (China Daily) Updated: 2014-05-16 10:48By the end of the first quarter, loan impairment reserves of commercial banks had risen by 94.1 billion yuan from the beginning of this year to 1.77 trillion yuan.
The banks' average rate of return on capital was 20.8 percent, falling 0.21 percentage point from the previous year, according to the data of the CBRC.
During an earlier meeting analyzing the economic situation in the first quarter, Shang Fulin, chairman of the CBRC, emphasized that institutions in the banking sector should strengthen their efforts in controlling their NPL balances and ratios.
He said that effort by the bank especially involves strengthening their monitoring of key sectors and areas with high risks, as well as preventing and resolving serious credit risks actively.
The banks have enhanced protection against credit risk and been more aggressive in collecting and writing off bad loans to improve asset quality.
The write-offs increased to 83.47 billion yuan in 2013 from 34.13 billion yuan in 2012.
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