Banks Set To Face Increasing Pressure From NPLs-Yicai

The pressure stemming from banks’ non-performing loans will continue to increase as economic headwinds gradually feed through to the financial sector, Yicai.com reported, citing Shang Fulin, former chairman of the China Banking Regulatory Commission, speaking at a weekend forum. The policy implemented to defer loan repayment for struggling enterprises may delay the risk exposure of some “zombie” companies and weaken economic vitality, Shang said. Banking regulators should continue to fully expose and increase the disposal of non-performing assets, emphasising the expansion of capital replenishment for small and medium-sized banks to enhance their risk resistance capabilities, the newspaper wrote, citing Shang.