BEIJING, Oct. 19 (Xinhua) -- The Chinese banks are expected to drop non-performing loan ratio thanks to the rise of loan write-offs in the first nine months, the Shanghai Securities News reported on Friday.
Data of the People's Bank of China (PBOC) shows that in the period from January to September this year, the total amount of loan write-offs by the domestic banks was 645.5 billion yuan, a year-on-year increase of 35.2 percent, indicating the banks' acceleration in recovering non-performing assets.
In the context of strict financial supervision and de-leveraging, the non-performing assets have increasingly become a big concern of the domestic banks, highlighting the priority to reduce them and resolve risk.
According to the China Banking and Insurance Regulatory Commission (CBIRC), as of the end of the second quarter of this year, the outstanding non-performing loans of the domestic commercial banks stood at 1.96 trillion yuan, an increase of 182.9 billion yuan from the end of the previous quarter. The non-performing loan ratio of the commercial banks was 1.86 percent, up 0.12 percentage points from the end of the previous quarter.
The CBIRC has repeatedly stated this year that it encourages banks to take advantage of the favorable conditions of adequate provisions to increase the write-offs of non-performing loans.
The banks will decide on methods of disposing of non-performing loans, according to their actual conditions. The write-off can quickly reduce the non-performing loan ratio, and help improve the quality of assets in terms of the financial indicators, said Yang Yue, an analyst at Zheshang Bank. (Edited by Hu Pingchao, hupingchao@xinhua.org)
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