Lower provision coverage ratios will....>

CHINA PRESS: Lower provision coverage ratios will help banks to settle their

non-performing loans and help support the real economy, said Wang Zhaoxing, the

vice-chairman of China Banking Regulatory Commission, China Securities Journal

reported Tuesday. Banks have operated well in the past several years and the

provision coverage ratio is more than 180%, much higher than foreign banks, said

Wang. An earlier report Tuesday from China Business News said a document issued

by the CBRC on Feb. 28 stating the provision coverage ratio will be lowered to

120%-150% from 150%, and the reserve for bad loans will be lowered from 2.5% to

1.5%-2.5%, with the specific figure based on individual banks conditions.