BEIJING, Sept. 1 (Xinhua) -- China commercial banks' non-performing loan (NPL) ratio dipped 0.05 percentage point from the end of the first quarter to 1.76 percent by the end of June, reported Xinhua-run Xinhua Finance on Wednesday.
The report quoting a research report released by China Banking Association (CBA) said that the NPL ratio meant bad loans of 2.8 trillion yuan held by commercial banks by the end of the second quarter.
According to CBA's report named 2021 annual development for China's banking industry, banking institutions possessed 336 trillion yuan of assets in total by the end of June, up 8.6 percent year on year.
Meanwhile, special mention loans, which mean loans whose borrowers are capable to repay but face certain unfavorable factors weighing on their repayment, accounted for 2.36 percent of the total loans of commercial banks.
In spite of the lower NPL ratio and special mention loan ratio compared with those in the first quarter, there are still pressures for banks to maintain their asset quality, and the quality of assets within the banking industry is likely to diverge in the second half of 2021 and regional differences will be more obvious than the past, according to the report.
By the end of 2020, NPLs of commercial banks totaled 2.7 trillion yuan and their NPL ratio was 1.84 percent, down 0.02 percentage point from the beginning of last year. In 2020, China's banking industry coped with non-performing assets of 3.02 trillion yuan, showed data with the CBA report.
For 2021, the report forecasts that assets and liabilities of China's banking industry will increase steadily together with further optimized structure and stabilizing net interest margin.
In the first half of this year, newly-added loans were 13.5 trillion yuan, with loans for small- and medium-sized enterprises and private enterprises up 16.4 percent and 8.6 percent respectively from the start of 2021. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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