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New rule, shadow banking crackdown will increase Chinese banks’ non-performing loan ratios, warns Alvarez & Marsal

New regulations that require mainland banks to recognise problematic loans earlier than their international peers are putting upward pressure on non performing loan (NPL) levels at the same time that a clampdown on illicit credit is underway, according to restructuring and turnaround specialist Alvarez & Marsal.Ronald Thompson, managing director for Alvarez and Marsal Asia, noted that the bad-loan measure among Chinese banks had improved recently, easing to 1.8 per cent in the first quarter… Source link

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China’s biggest banks well prepped on non-performing loans, ready for stricter reporting standard

The latest window guidance, which calls for recognising NPLs at more than 60 days overdue, has only been issued to China’s six biggest banks: Industrial and Commercial Bank of China, Bank of China, China Construction Bank, Agricultural Bank of China, Postal Savings Bank of China and Bank of Communications. Photo: Reuters Source link

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