NPLs At Four Top China Banks Falling: Central Bank Chief

Warsaw, September 26: | Updated: Sep 27 2002, 05:30am hrs
China is making progress in reducing the ratio of non-performing loans (NPLs) at its big four state banks, central bank governor Dai Xianglong said on Thursday during a visit to Poland.

The non-performing loan ratio was at 24.5 per cent in April and it fell to 23 per cent in August, but only a portion of this needs to be written off, he said in Warsaw, where he was meeting Polish bank officials.

The banks Industrial and Commercial Bank of China, Bank of China, China Construction Bank and Agricultural Bank of China have cut the value of their NPLs by 59.7 billion yuan ($7.2 billion) in the first six months of 2002, a newspaper reported last week. China set up asset management companies Huarong, Orient, Cinda and Great Wall in 1999 to take over 1.4 trillion yuan ($170 billion) in bad loans from the state banks, which analysts say cut their NPL ratios by around 10 percentage points. (Reuters)