State-Owned Bank Publishes Non-Performing Loans

Home>>Business

Last updated at: (Beijing Time) Thursday, April 25, 2002

State-Owned Bank Publishes Non-Performing Loans

The Industrial and Commercial Bank of China (ICBC), one of China's four wholly State-owned commercial bank, made an ice-breaking move Thursday to publish its non-performing loan figures.

DISCUSSION

CHINESE

SEND TO FRIEND

The Industrial and Commercial Bank of China (ICBC), one of China's four wholly State-owned commercial bank, made an ice-breaking move Thursday to publish its non-performing loan figures.

A spokesman for the ICBC said, in line with the five-category international standard governing the quality of banking assets, the ICBC's non-performing loans constitute 29.8 percent of its total loans by the end of 2001, decreasing 39.01 billion yuan or 4.65 percentage points from the previous year.

He said the latest move aims to further improve the transparency of management information, accept public supervision and gradually get in line with internationally practiced standards.

The quality of banking assets has so far been a taboo in China's financial sector, leaving outsiders to make wild guess of any kind. But with China's entry into the World Trade Organization and the deepening of banking reforms, the asset quality of State-ownedbanks will no longer be secrets.

The spokesman said thanks to strict quality control measures, the non-performing rate of the ICBC's new loans over the past three years was only 1.1 percent, and in 2001 it dropped further to a low of 0.22 percent.

He said the bank has already invited renowned accounting firms to audit the asset quality of some of its branches, and will carryout such auditing on the bank's overall businesses at an appropriate time.

He said the bank is confident to cut its non-performing loans by some 4 percentage points each year and lower the ratio of non-performing loans to less than 10 percent in the coming five years,and at the same time get the bank listed.

Questions?Comments? Click here

Chinese Bank to Increase Consumer Loans

Chinese Bank Loans 1.28 Trillion Yuan to Small Firms

Chinese Bank Puts Huge Loans in Fixed Assets

Protests Prompt Retailer to Pull T-shirts Mocking Chinese-Americans ( 35 Messages)

Ins and Outs of a Young American's Roguery on Bus in China ( 142 Messages)

FM Spokeswoman: US Has Clarified its Stance on Taiwan Issue ( 21 Messages)

China's Economy to Grow Above Six Percent ( 29 Messages)

China Expresses Strong Dissatisfaction over Japanese PM's Shrine Visit ( 6 Messages)