The China Banking and Insurance Regulatory Commission (CBIRC) has announced that it disposed of approximately 2 trillion yuan (approx. USD$289 billion) in non-performing loans (NPL) in 2019.
CBIRC said via its official website that this disposal of NPL’s also included all loans of Chinese commercial banks in arrears for more than 90 days, as mandated by stricter NPL definitions launched in 2019.
According to CBIRC assets in the Chinese shadow banking sector have also contracted by 16 trillion yuan compared to their scale at its peak, while the number of institutions and participants as well as the total lending balance of the online P2P lending sector had fallen for 18 consecutive months.
Renminbi loans increased by 17 trillion yuan in 2019, for a widening of 1.1 trillion yuan compared to 2018. The insurance fund operating balance was approximately 18 trillion yuan, for an increase of 9.5% compared to the start of 2019.
Total private enterprise loans increased by 4.25 trillion yuan, while the financial inclusion micro-and-small enterprise (MSE) loan balance was 11.6 trillion yuan, for a YoY rise of 25%.
The financial inclusion MSE loans of China’s big five state-owned banks increased by 55% in 2019, while the integrated financing costs of MSE loans fell by over 1 percentage point.