Banking News
- 12 stockholding banks' NPL ratio down
Date: 6-Feb-2007 Sources: (Shenzhen Daily)
THE nonperforming loan (NPL) ratio at the country's 12 joint stockholding commercial banks at the end of 2006 was 2.96 percent, down 1.8 percentage points from the start of the year, according to the banking regulator.
In a statement on its Web site, the China Banking Regulatory Commission said outstanding nonperforming loans at the 12 banks totaled 99.02 billion yuan (US$12.73 billion) at the end of 2006, 31.06 billion yuan less than at the start of the year.
The 12 stockholding commercial banks are: Bank of Communications Co., Shenzhen Development Bank Co., Guangdong Development Bank, China Everbright Bank Co., Hua Xia Bank Co., China Minsheng Banking Corp., China Merchants Bank Co., Shanghai Pudong Development Bank Co., China CITIC Bank, Industrial Bank Co., Evergrowing Bank Co. and China Zheshang Bank.
These banks have been slowly eroding the market share of the big four State banks - Industrial and Commercial Bank of China, Bank of China, China Construction Bank and Agricultural Bank of China.
The NPL ratio for China's 11 city commercial banks with assets of more than 50 billion yuan was around 6 percent at the end of 2006, down roughly 1.7 percentage points from the start of the year, said the commission.
The outstanding NPLs for those 11 city commercial banks was 25.91 billion yuan at the end of 2006, 5.01 billion yuan less than at the start of the year, it said.
For all of China's city commercial banks, the average NPL ratio at the end of 2006 was 6 percent, the commission said Friday in another statement. That compares with an NPL ratio of 7.73 percent at the end of 2005, based on the commission's data.
The average capital adequacy ratio of the city commercial banks was 6.5 percent at the end of 2006, said the commission. That was lower than the regulatory minimum of 8 percent.
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