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Regulators Should Beware of Hidden NPLs: News

CHINA PRESS
MNI (Sydney)

Chinese regulators should scrutinize banks for hiding non-performing loans through creative accounting or repackaging as the pandemic-hit economy led to surges in lenders' bad debt, the PBOC-run Financial News said in a commentary. Regulators should encourage financial institutions to boost capital and provisions to offset NPLs, the newspaper said. Bad debt held by lenders is likely to rise further and may create longer-term risks, as industries such as restaurants and entertainment continue to be hard-hit by the pandemic, according to the commentary.

MNI Sydney Bureau | +61-405-322-399 | lachlan.colquhoun.ext@marketnews.com
MNI Sydney Bureau | +61-405-322-399 | lachlan.colquhoun.ext@marketnews.com

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