China’s banks maintain stable credit quality in Q1 ’24

China’s commercial banks maintained stable credit asset quality in the first quarter of 2024, with the non-performing loan (NPL) ratio at 1.59 per cent by the end of March, Xinhua reported on Sunday citing the National Financial Regulatory Administration.

This figure remained practically unchanged compared to the end of 2023, signifying a continuation of stable credit management practices.

The NPL balance increased to 3.4 trillion yuan by the end of Q1, up by 141.4 billion yuan. However, this growth was overshadowed by the overall loan portfolio, which reached 208.2 trillion yuan, showing ongoing loan expansion.

The data shows strong support for small and micro-sized enterprises (SMEs), with outstanding loans from banking institutions totalling 74.4 trillion yuan. This commitment to SME financing is vital for economic development and job creation.

The report highlighted a strong banking sector, with total assets in domestic and foreign currency reaching 429.6 trillion yuan by the end of March. This marks an 8.1 per cent year-on-year increase.

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