Senior figures from Shanghai Pudong Development Bank had frank words to dispense about the problem of non-performing loans in the Chinese banking sector.
At the release of the bank’s latest annual report SPD head Liu Xinyi pointed to marked changes in the Chinese NPL situation, with a gradual spread from the eastern coast to the inner west and north east of China.
“Non-performing loans are displaying different change trends in various regions, and it’s vary hard to say when we’ll see an end to this,” said Liu. “We definitely need some time, but it won’t bee too long a period, and looking at various indicators, we can already see a light at the end of the tunnel.”
Chief manager of SPD’s asset-debt management department Chen Haining a key focus of structural adjustment to banking revenue was how to raise non-interest earnings as the interest rate spread narrowed, pointing to financial markets, asset management, financial management and retail operations as being primary sources of revenue growth for the Pudong-based lender last year.
SPD expect capital costs to rise this year amidst broader deleveraging and scarcity of funds, with the government strengthening control of the housing market and credit policies.