News Column

H1 Banking NPL First Exceeded 1%

August 15, 2014

SHANGHAI, August 15, SinoCast -- Small and micro enterprises (SMEs) in the Yangtze River Delta were in a "micro-booming" state to bring an increase in non-performing loans (NPL) of the banking sector, according to a person at SPDB's small enterprise financial services center.

In the first half of this year, the banking sector's NPL ratio exceeded 1% for the first time in ten years, which is relatively normal compared with Europe countries and the US.

The "micro-booming" state indicates SMEs' overall operating status and credit risk have been improved and the risk undertaken by the entire banking was on the rise. However, the risk is within the controllable range of banks. From the overall assets quality, the Yangtze River Delta was worse than other regions.

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Source: Sinocast Banking & Credit Beat (China)

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