Local lenders report record low NPL ratios
15/1/2004 16:48
Thanks to the tightening risk control, domestic banks in Shanghai
reported a record low non-performing loan ratio of 4.52 percent among new loans
extended last year, according to an industry report released yesterday by
Shanghai Supervision Bureau of China Banking Regulatory Commission.
As a
result, the combined bad loan volume dropped 10 billion yuan (US$1.2 billion)
from the beginning of 2003 to 49 billion yuan at the year's end.
Local
branches of Bank of China and China Construction Bank as well as Shanghai Pudong
Development Bank top domestic banks in NPL ratio cut with drops of 4.59, 3.72
and 3.68 percentage points respectively.
Outstandingly, Shanghai Rural Credit
Cooperatives has reported a sharp fall in NPL ratio, the industry report pointed
out.
But NPL ratios of all the banks still remain above 5
percent.
Officials with local banking supervision bureau attributed the
declines to the intensifying risk control adopted by the banks, noting their
effort has particularly resulted in a successful control of bad loan growth
among the new extended ones in the past year.
The bureau will continue
enforcing the risk control system this year to improve the security of loan
extending procedures, the officials added.
Jane Chen/ Shanghai Daily news
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