China's city-level commercial banks recorded an average
non-performing loan (NPL) ratio at four percent for this year, down
form the 15.26 percent level at the end of 2003, according to Jiang
Dingzhi, deputy head of the China Banking Regulatory
Commission.
Jiang said smaller commercial banks nationwide, including rural
cooperative banking institutions, are developing in a healthier
way, with their capital adequacy and assets quality improved
substantially.
City commercial banks had their average capital adequacy ratio
raised to 8.6 percent this year, up from the -1.6 percent at the
end of 2003.
Rural cooperative banking institutions reported 183.1 billion
yuan in combined net assets, and their capital adequacy ratio
averaged 9.1 percent, as against the -6.8 percent four years
ago.
They had made losses for 10 consecutive years but reversed the
situation last year, when they garnered 18.6 billion yuan in net
profits, compared with 550 million yuan of losses in 2003.
According to Jiang, some city commercial banks expanded their
business geographically and began raising money on domestic equity
markets.
Bank of Shanghai, Bank of Beijing and Bank of Ningbo have
launched branches in areas outside their base cities. Bank of
Nanjing, Bank of Ningbo and Bank of Beijing have went public on
A-share markets.
There are in China 115 city commercial banks and more than
30,400 rural cooperative banking institutions.
(Xinhua News Agency November 24, 2007)