China's four state-owned commercial banks welcomed a net drop of
2.1 percents in their non-performing loans in the first half of
this year, largely a reflection of improved management in the
country's banking sector.
Dai Xianglong, governor of the
People's Bank of China, said at the central bank's working
meeting on financial supervision on 14th that thanks to concerted
efforts, China's banking sector maintained its stable development
momentum.
He
said the growth of the non-performing ratio of the four state-owned
banks' loans began to slow in 2000, and in the last quarter of the
year it enjoyed a net decrease. To date, the net decrease trend for
non-performing loans has continued for nine months in
succession.
He
said that China's commercial banks have generally established
systems of authorization and crediting, the separation of
examination from loan granting, auditing and checking, and
personnel exchange. Their sense of risk and profit has been clearly
reinforced.
At
present the risk of medium-sized and small financial institutions
has been basically brought under control. The financial market
order is being improved, and illegal financial activities have been
effectively contained, he added.
He
demanded further reinforcement of financial supervision, with the
focus on lowering non-performing loans. This year and next year,
the four state-owned commercial banks and policy-oriented banks
should lower the ratio of their non-performing loans by two to
three percents annually, he said.
(Shanghai Daily 07/15/2001)