MNI POLICY: NPLs At Major Chinese Banks Edge Down

By Wanxia Lin

     BEIJING (MNI) - Bank of China said Friday its non-performing loan ratio

fell last year, following similar announcements the preceding day from two other

major state-owned banks.

     BOC's NPL ratio edged down to 1.42% from 2017's 1.45%. Top lender

Industrial and Commercial Bank of China had said its ratio had declined to 1.52%

in 2018, down from 2017's 1.55% and 2016's 1.62%, and China Construction Bank's

fell to 1.46% from 1.49% in 2017.

     But the banks remain concerned about asset quality, with all three raising

provisions against bad loans. This comes as the government has set a target for

large state-owned banks to boost lending to private and small and micro-sized

enterprises to at least 30% of total loans this year.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

--MNI London Bureau; +44 203 865 3829; email: jason.webb@marketnews.com

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