China's Joint Stock Bank in Steady & Stable Development

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Last updated at: (Beijing Time) Thursday, February 07, 2002

China's Joint Stock Bank in Steady & Stable Development

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As indicated in the statistic research report of the Central People's Bank, last year saw the profit of shareholding commercial banks and city commercial banks come to a total of RMB12.915 billion yuan, an increase of RMB1.163 billion yuan as against that of the year before. And the payment risk of the city credit cooperatives as a whole has been greatly diminished.

The statistic research report published recently by the People's Bank of China indicates that the year of 2001 witnessed remarkable achievements by the shareholding commercial banks, city commercial banks and city credit cooperatives in their business development and the role played in alleviating financial risks.

As pointed out in the report up to the end of 2001, the capital assets of the three financial institutions has come to RMB 3.3962 trillion yuan in total, a rise by 23.66 percent as compared to the corresponding period of the year before. All deposits came to a balance of RMB 2.6407 trillion yuan, a rise of 28.7 percent in comparison to that of the year before. All credits came to a balance of RMB 1.7517 trillion yuan, an increase of 28.68 percent as against the same period of the previous year. 2001 saw the profit of shareholding commercial banks and city commercial banks come to a total of RMB12.915 billion yuan, an increase of RMB1.163 billion yuan as against that of the year before.

The capital, deposit and loan in a batch of national shareholding banks set up one after another in the middle and late 1980s saw the fastest growth according to the report. Up to the end of 2001, the gross capital of the 10 shareholding commercial banks and the Yantai Housing Bank amounted to RMB2.3858 trillion yuan with their liabilities coming to a total of RMB2.2828 trillion yuan and the equity of shareholders coming to RMB103 billion yuan, an increase of 28, 29 and 6.9 percent respectively as against the year before. The deposit saw a balance of RMB1.8485 trillion yuan, a rise of 33.7 percent and credit balance to RMB 1.2244 trillion yuan, a growth of 33 percent. The average rate of bad loans came to 12.94 percent, a decrease of 3.42 percent as compared to the year before, realizing by and large the controlling target as set by the People's Bank of China.

The report also said that more than 100 city commercial banks built up in line with the shareholding principle on the basis of the agglomeration of city credit cooperatives have witnessed a better trend of development after years of reform and readjustment. Up to the end of 2001, there were 108 commercial banks in a country, an additional 10 more than the beginning of the year. The gross capital came to RMB 873.037 billion yuan, an increase of 23.02 percent, balance of deposit RMB 681.669 billion yuan, a rise of 27.15 percent, balance of credit RMB 425.773 billion yuan, an increase of 22.86 percent as against the same period of the year before. The proportion of deposit and credit is 62.46 percent with bad loans coming to RMB 107.078 billion yuan, first time lower than the balance as against the same period of the previous year. And it saw a bad loan proportion of 25.15 percent, a decrease of 5.81 percent in comparison to the beginning of the year.

The statistic report has given a revelation to the development situation of the city credit cooperatives, holding that the payment risk of the city credit cooperatives as a whole has been greatly reduced.

By PD Online staff member Han Rongliang

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