The story appears on

Page A12

July 2, 2018

GET this page in PDF

Free for subscribers

View shopping cart

Related News

Home » Business » Finance

Progress in curbing financial risks in Q1

CHINA continued to make progress in curbing risks in the financial sector in the first quarter of 2018, said Moody’s.

“We are noticing slowing asset growth and stabilizing asset quality, as well as accelerating loan growth as banks are returning to conventional lending and away from shadow banking activities,” Nicholas Zhu, Moody’s vice president and senior analyst, said in a report.

“Looking ahead, we expect the regulators will maintain a cautious approach in order to alleviate any potential disruption to the real economy from the clampdown on shadow banking and interbank activities,” Zhu said.

China’s banking institutions saw their total assets of 256 trillion yuan (US$38.7 trillion) at the end of the first quarter, up 7.4 percent year on year, slower than the 14.3-percent growth a year earlier, official data showed.

The average non-performing loan ratio for commercial banks was 1.75 percent by the end of the first quarter, edging up 0.01 percentage point from the end of 2017, said the China Banking and Insurance Regulatory Commission.

Asset quality stabilized in line with sustained expansion in the macroeconomy, the report said.

Lenders’ profitability improved, while liquidity remained balanced among the banks, the report said.

Chinese authorities have taken stricter measures to regulate the financial sector, as preventing risks is one of the “three tough battles” it aims to win in the next three years.




 

Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend