By John Ross Source: CRI Published: 2016-1-6
Analysts suggest that bad loans will continue to pose a challenge for China`s biggest banks in 2016. [File Photo: 163.com]
Official data shows bad loans rose to a seven-year high of 1.2 trillion yuan or about 184 billion U.S. dollars as of the end of September.
Bloomberg also says China`s five largest banks may report combined profits of 936 billion yuan or 144 billion U.S. dollars this year, an increase of 1.4 percent from a year earlier.
The survey suggests earnings will be capped by the country`s economic slowdown, bad debts, and shrinking margins.
Currently, China`s banking regulator is continuously monitoring the banking system`s bad loans not only on a monthly or quarterly basis, but on a ten day basis.
For more on this topic, CRI`s Bob Jones earlier spoke with John Ross, senior fellow with the Chongyang Institute for Financial Studies at Renmin University.