Text Version
RSS Feeds
Newsletter
Home Forum Photos Features Newsletter Archive Employment
About US Help Site Map
SEARCH   About US FAQ Site Map Site News
  SERVICES
  -Text Version
  -RSS Feeds
  -Newsletter
  -News Archive
  -Give us feedback
  -Voices of Readers
  -Online community
  -China Biz info
  What's new
 -
 -
Survey: worst time for China's economy has gone
+ -
14:42, September 09, 2009

 Related News
 China's central bank urges banking sector to strengthen information security
 Experts: credit surge to ease gradually
 Four state-owned banks' new loans reach 160 bln yuan in August
 More but smaller loans to China's SMEs in H2
 Four state-owned banks restore new loan dominance
 Comment  Tell A Friend
 Print Format  Save Article
56 percent of Chinese bankers believed that the worst time for China's economy had gone and that long-term supporting factors to the banking sector's development had remained unchanged, according to a survey jointly conducted by China Banking Association and PricewaterhouseCoopers (PwC).

Surging new loans in the first half of 2009 was a focus of the survey. 70 percent of the bankers involved it believed that total new bank loans in 2009 would be at least 20 percent higher than the previous year.

Narrowing interest margin was regarded by 90 percent of the bankers surveyed as the biggest challenge facing them. Since the end of 2008, most of new bank loans have floated to infrastructure construction sector and central enterprises. Expanding credit became the main strategy of Chinese banks.

However, credit surge in the first half didn't bring high profit for the banking sector. The high executives of Chinese banks are currently more interested in adjustment of credit structure.

"Banks should improve their credit structure to help China's the economic restructuring," said Zhu Xiaohuang, vice-president of China Construction Bank (CCB).

Chinese banks' operation risk is another hot topic. 55 percent of bankers surveyed believed that non-performing loans (NPLs) may rise in the future. 80 percent of them however estimated that their banks' NPL ratio would remain below 5 percent.

Concern should go to issues including long-term loans and concentration of credit, Wang Huaqing, disciplinary secretary of the China Banking Regulatory Commission (CBRC).

The banks have seen a declining trend of their capital adequacy ratios. Some small and medium sized banks are facing mounting pressure of capital inadequacy.

"Loans are banks primary asset category and rely heavily on their capital. This traditional development mode should be changed," said Ba Shusong, deputy head of Financial Research Institute of Development Research Center of the State Council.

By People's Daily Online



  Your Message:   Most Commented:
Being African among the curious Chinese
Australia's permission for Rebiya's visit chills bilateral ties
Why India is pursuing military strength?
Baby alien found by Mexican farmer
What is beyond the physical Line?

|About Peopledaily.com.cn | Advertise on site | Contact us | Site map | Job offer|
Copyright by People's Daily Online, All Rights Reserved

http://english.people.com.cn/90001/90778/90857/90859/6752674.pdf