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Last updated at: (Beijing Time) Wednesday, January 16, 2002

Central Bank Governor: Quality of Bank Assets Sharply Improved

China's State-owned commercial banks outstanding non-performing loans dropped by 90.7 billion yuan in 2001, according to Dai Xianglong, governor of the People's Bank of China.


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China's State-owned commercial banks outstanding non-performing loans dropped by 90.7 billion yuan in 2001, according to Dai Xianglong, governor of the People's Bank of China.

Replying to questions at a press conference here Tuesday, Dai said that at the end of last year, the non-performing rate of the State-owned commercial banks stood at 25.37 percent, 3.81 percent lower than at the beginning of the year.

He said that last year the four State banks made profits of 26. 6 billion yuan after making up for historical losses of over 40 billion yuan.

He said that a major reason for the improvement of asset quality and profitability was the reinforced supervision, and this year the central bank will further step up its efforts in this respect.

This year a banking supervision standard that is in accordance with international standards will be established, and the central bank will join hands with the Ministry of Finance to regulate the accounting system of commercial banks. Overseas accounting firms will be invited to participate in auditing financial institutions, he said.

In addition, after three years of trial operations, the five- category loan grading system will be implemented in all commercial banks this year; all commercial banks will be required to adopt an information releasing system; and strict laws and regulations will be drafted to govern the revoking or bankruptcy of financial institutions.

At the same time, he said, attention will be paid to commercial banks' reform of internal mechanism and the standardizing social credibility.




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