Business
19:43, 05-Aug-2017
China’s banking sector to see stable growth in 2017-2018, says report
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China's banking sector is expected to grow steadily during the 2017-2018 period with a lower non-performing asset ratio and an estimated annual growth of 10 percent in commercial banks' assets, China Banking Association (CBA) said in its annual report released on Friday.
The money supply will gradually expand, but problems including weak growth of interest rate differentials and rising credit costs might threaten net profits.
Commercial banks lent more money to small and micro businesses and in individual housing loans in 2016, and much less to industries suffering from overcapacity, according to Pan Guangwei, executive vice head of the CBA.
In 2017, commercial banks are expected to make adjustments to better serve the Belt and Road Initiative, Beijing-Tianjin-Hebei coordinated development and Yangtze River Economic Belt plans.
"The growth of outstanding non-performing loans (NPLs) of the listed banks and their NPL ratio have eased in 2016. Some of them even witnessed drops in the NPL ratio," said Lian Ping, chief economist of the Bank of Communications, one of the authors of the report.
Given that the NPL burden has been relieved and experience gained in dealing with NPLs, such as debt-to-equity swaps, Lian expected the NPL ratio to be stable during 2017-2018.
(Source: Xinhua)