NPL’s Rise Amongst China’s Commercial Banks

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A new research report from Bank of China points to an uptick in non-performing loans (NPL’s) amongst China’s commercial banking players.

The report released by Bank of China’s International Finance Research Group indicates that as of the end of 2016 the NPL balance for China’s commercial banks was 1.5 trillion yuan, rising 18.7% year-on-year.

The rate of growth in NPL’s fell 32.6 percentage points compared to the end of 2015, while the NPL rate was 1.74%, for a gain 0.1 percentage points compared to the end of 2015.

Xiong Qiyue, a researcher with BOC, said that the NPL are likely to fall in 2017 if China’s real economy can maintain steady and consistent growth.

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