China’s bad loan risks controllable

Says central bank governor

XINHUA, BEIJING: China’s central bank governor has said risks in the country’s banking system are controllable despite an increase in bad loans, while reaffirming the role of monetary and fiscal stimulus in crisis handling.
Although Chinese banks have seen their dud loans rise, they have sufficient capital to cope and, overall, the risks can be controlled, Zhou Xiaochuan, governor of the People’s Bank of China (PBOC), was quoted as saying by a PBOC statement released yesterday. 
He made the remarks while attending the World 
Bank-International Monetary Fund annual meetings held in Washington from Friday to Sunday, according to the statement.
The comments came as China’s rapid credit growth raised concerns about the quality of banking assets and a possible real estate bubble.
Chinese banks’ non-performing loan ratio rose to 1.75 per cent at the end of June, stable from a quarter earlier but up from 1.67 per cent at the end of 2015, with bad loans reaching 1.44 trillion yuan, according to official data. 

Chinas bad loan risks controllable

Says central bank governor

XINHUA, BEIJING: Chinas central bank governor has said risks in the countrys banking system are controllable despite an increase in bad loans, while reaffirming the role of monetary and fiscal stimulus in crisis handling. Although Chinese banks have seen their dud loans rise, they have sufficient capital to cope and, overall, the risks can be controlled, Zhou Xiaochuan, governor of the Peoples Bank of China (PBOC), was quoted as saying by a PBOC statement released yesterday. He made the remarks while attending the World Bank-International Monetary Fund annual meetings held in Washington from Friday to Sunday, according to the statement. The comments came as Chinas rapid credit growth raised concerns about the quality of banking assets and a possible real estate bubble. Chinese banks non-performing loan ratio rose to 1.75 per cent at the end of June, stable from a quarterearlier but up from 1.67 per cent at the end of 2015,with bad loans reaching 1.44 trillion yuan, accordingto official data.