Chinese Bank Uses Legal Means to Recover Non-Performing Loans

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Last updated at: (Beijing Time) Tuesday, December 11, 2001

Chinese Bank Uses Legal Means to Recover Non-Performing Loans

The Industrial and Commercial Bank of China said Tuesday that retrieving non-performing loans via law suits has become an effective way for the bank to improve asset quality.

The Industrial and Commercial Bank of China said Tuesday that retrieving non-performing loans via law suits has become an effective way for the bank to improve asset quality.

A spokesman for the bank said that by the end of October, the bank had sued more than 60,000 businesses for unpaid loans worth 128.2 billion yuan (15.5 billion U.S. dollars), of which 26.2 billion yuan (3.17 billion dollars), or 20.43 percent, has been recovered.

The spokesman said that the recovery of non-performing loans by legal means is very efficient. It helps the bank lower the ratio of non-performing assets and raise operational efficiency, protects the safety of State-owned financial assets, and fosters credit consciousness among businesses and society as a whole.

So far this year the bank has recovered non-performing loans worth 102.2 billion yuan (12.36 billion dollars) and by the end of September, the number of non-performing loans had dropped by 2.8 percent.

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