The total assets of the Chinese banking sector saw an increase of over 9% at the end of the first quarter of 2021 compared to the same period last year, while the non-performing loan ratio edged lower compared to the start of the year.
The total assets of the Chinese banking sector stood at 329.6 trillion yuan (approx. USD$50.81 trillion) at the end of the first quarter, for a rise of 9.2% compared to the same period last year, according to data released by the China Banking and Insurance Regulatory Commission (CBIRC). Total liabilities were 302 trillion yuan, for a YoY rise of 9.2%.
The total assets of the Chinese insurance sector were 24.3 trillion yuan at the end of the first quarter, for a YoY rise of 11.7%.
CBIRC said that key operating and risk indicators remained in “rational territory.” At the end of the first quarter the non-performing loan (NPL) balance was 3.6 trillion yuan, for an increase of 118.3 billion yuan compared to the start of the year.
The NPL ratio was 1.89%, for a decline of 0.02 percentage points compared to the start of the year, while loans in arrears for over 90 days accounted for 81.5% of NPL’s.
CBIRC said that the liquidity levels of Chinese banking and insurance financial institutions remained “stable,” with the liquidity coverage ratio of Chinese commercial banks at 141.8%.
New renminbi loans were 7.7 trillion yuan in the first quarter for an expansion of 574.1 billion yuan compared to the same period last year, maintaining what CBIRC referred to as “appropriate growth.”
CBIRC said that this increase in lending provided steady funds to economic recovery and the real economy, with loans primarily directed towards innovative tech firms, green development, micro and small-enterprises, individual industrial and commercial registrants and new agricultural enterprises.
New bond investments by Chinese banks and insurers totalled approximately 1.7 trillion yuan in the first quarter, providing firm support to debt financing by both government and enterprise.