While the China Banking and Insurance Regulatory Commission (CBIRC) has recently introduced a number of measures to rectify the financial order, news has recently emerged that the banking industry’s profits have plummeted.
According to Reuters, China’s banking industry has seen its largest profit drop in history due to the epidemic and other factors. State-owned large banks and joint-stock banks saw their first-half net profits fall by 12% and 8.5% year-on-year, respectively, while second-quarter profits fell by 27.9% and 26.6% year-on-year.
Meanwhile, officials from the China Banking and Insurance Regulatory Commission (CBIRC) recently disclosed that the balance of non-performing loans (NPLs) in China’s banking sector stood at RMB 3.7 trillion at the end of August, with the NPL ratio at 2.13%, up 0.11 percentage points from the beginning of the year.
CBIRC officials also said that although the shadow bank capital shortage and other problems have been alleviated, but the net lending risk disposal difficulties are large, the suspended institutions stock risk disposal task is heavy, net lending will remain high risk for some time.
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