Chinese banks warned against rising bad debt as measures subside | Asian Banking & Finance - The Latest News, Headlines, Insight, Commentary & Analysis
,China
4 views

Chinese banks warned against rising bad debt as measures subside

CBIRC also warned against emerging local real estate bubbles.

The China Banking and Insurance Regulatory Commission (CBIRC) has said banks should protect themselves against higher non-performing assets as the country withdraws some relief measures implemented during the pandemic, reports Reuters.

"The default rate for some large and medium-sized enterprises has risen, and the credit risks at banking institutions has intensified," CBIRC chairman Guo Shuqing told a financial forum in Shanghai via a video message, adding that an emerging trend of domestic real estate bubbles remained “serious."

Corporate bond defaults have risen sharply in China in recent years, reaching $14b in 2020, according to the Institute of International Finance. Chinese banks also extended a record $3t in new loans in 2020, data from the People's Bank of China showed.

Investors should also be aware of potential investment losses on financial derivative products, commodity-linked futures, and rising Ponzi schemes, Guo warned.

Here's more from Reuters.

Get Asian Banking & Finance - The Latest News, Headlines, Insight, Commentary & Analysis in your inbox
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Shares were priced at the top end, at KRW39,000 ($34).
In January, 1.2 million transactions were carried out via the SGQR.
Its launch will require legal changes to the nation’s foreign exchange and IT rules.
But less than half of consumers are impressed with the digital financial services currently offered.
Treasury teams can mobilize liquidity and fund intraday payments in real-time.
Customers have the option to pay their tax balances in full or partially.
About 750 new accounts have been opened in four APAC markets through the new portal.
UnionDigital will be a wholly-owned subsidiary of the Philippine lender.
SmartStream’s Peter Hainz and Amazon Web Services’ Anna Green shared their insights on the advantages of on-demand and highly scalable cloud environments for banks and other financial institutions, as well as the factors hindering its adoption in the region.
This August, the Asian Banking & Finance and SAP will provide insights on the evolving landscape for ESG in financial services.
Thirteen lenders noted that demand was moderately weaker than the preceding 3-month period.
Investors will likely seek signs that private lenders will be able to step up lending once COVID subsides.
It opens up new revenue models and lowers the cost-to-serve.
Bypassing credit cards, the payment instalment options prove to be attractive.
More banks and institutions are exploring its use for payments and cross-border transfers.