{"id":81485,"date":"2014-11-17T12:05:42","date_gmt":"2014-11-17T12:05:42","guid":{"rendered":"https:\/\/armbanks.am\/2014\/11\/17\/241787\/"},"modified":"2024-12-15T13:14:29","modified_gmt":"2024-12-15T13:14:29","slug":"chinas-bad-loans-jump-by-most-since-2005-in-third-quarter","status":"publish","type":"post","link":"https:\/\/armbanks.am\/en\/2014\/11\/17\/81485\/","title":{"rendered":"China\u2019s bad loans jump by most since 2005 in third quarter"},"content":{"rendered":"

YEREVAN, November 17. \/ ARKA \/.<\/strong> China\u2019s bad loans jumped by the most since 2005 in the third quarter, fueling concern that a cooling economy will be further weakened as banks limit lending to avoid credit risks, vestifinance.ru reported citing Bloomberg.<\/p>\n

Nonperforming loans rose by 72.5 billion yuan ($11.8 billion) from the previous quarter to 766.9 billion yuan, the China Banking Regulatory Commission said in a statement on Nov. 15. Soured credit accounted for 1.16 percent of lending, up from 1.08 percent three months earlier.<\/p>\n

\u201cWe are still suffering from the aftermath of the credit binge and massive stimulus measures put in place in 2008,\u201d said Rainy Yuan, a Shanghai-based analyst at Masterlink Securities Corp. \u201cBanks have accelerated recognition of their bad loans in the last two quarters so that they could start the clean-up process.\u201d<\/p>\n

Still, the pace of debt souring may have reached its peak, Jim Antos, a Hong Kong-based analyst at Mizuho Securities Asia, said in a note. He estimated that nonperforming loans at Hong Kong-listed banks will probably increase by 18 percent in 2015, slowing from an estimated 31 percent gain in 2014.<\/p>\n

Chinese banks\u2019 combined net income rose 12.7 percent to 1.26 trillion yuan in the first nine months from a year earlier, the CBRC data showed.<\/p>\n

Lenders\u2019 bad-loan coverage ratio, a measure of reserves for soured credit, narrowed to 247.2 percent from 262.9 percent in June, the CBRC data showed. Their capital adequacy ratio, a measure of financial strength, increased to 12.9 percent from 12.4 percent three months earlier.-0-<\/p>\n","protected":false},"excerpt":{"rendered":"

China\u2019s bad loans jumped by the most since 2005 in the third quarter, fueling concern that a cooling economy will be further weakened as banks limit lending to avoid credit risks, vestifinance.ru reported citing Bloomberg<\/p>\n","protected":false},"author":1,"featured_media":162167,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","tstyn_error":""},"categories":[12139,9216],"tags":[13776,12880,12172],"class_list":["post-81485","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy-en","category-news","tag-bad-loan","tag-china","tag-economy-en"],"acf":[],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t