trending Market Intelligence /marketintelligence/en/news-insights/trending/4viTyocTsMOj0w1_h9zdow2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Privately owned Chinese banks report YOY decline in Q3 NIM

Street Talk Episode 68 - As many investors zig away from bank stocks, 2 vets in the space zag toward them

Street Talk Episode 66 - Community banks tap the debt markets while the getting is good

Street Talk Episode 67 - Veteran investor tabs Mick Mulvaney to help with latest financial stock-focused fund

Street Talk Episode 65 - Deferral practices trap US bank portfolios in purgatory

Privately owned Chinese banks report YOY decline in Q3 NIM

China's privately owned banks, which extend microloans mainly to online shoppers, farmers and small businesses, were the only commercial bank type in the country to report a decline in net interest margin for the September quarter.

The third-quarter aggregate NIM of the country's 17 privately owned banks was 4.00%, down from 4.39% in the prior-year period, according to data from the China Banking and Insurance Regulatory Commission.

Despite the 39-basis-point contraction from the corresponding 2017 period, the aggregate NIM of privately owned lenders was still almost twice the industry average of 2.15%.

SNL Image

All other categories of banks reported an increase in NIM over the same period. For instance, the rural commercial bank segment reported the second-highest NIM among Chinese commercial lenders, rising to 2.95% from 2.83% a year earlier.

Since Tencent Holdings Ltd. launched China's first privately owned bank, WeBank Co. Ltd., in 2014, these lenders often charge interest rates higher than traditional banks, as most microloans extended by these banks are unsecured and do not require collateral.

However, the Chinese government's clampdown on shadow banking in recent years has effectively closed off a source of funding that was once popular among privately owned banks, which have limited access to deposits or other cheap funding sources. This is turn drove up funding costs, eating into their margins.

But amid slowing economic growth and protracted uncertainty surrounding trade tensions, Beijing has urged the banking sector to extend more credit to small, struggling businesses, and some analysts expect funding costs to ease in the near term. This could mean margins at privately owned banks could stabilize, or decline at a slower pace.

SNL Image

To see aggregate banking statistics for a specific country, go to the country's profile on the website by using the search function at the top of the site. In the left sidebar, click on "Aggregate Financial Highlights" under the "Banking Industry" section. Here is an example for China.
Click here to set up real-time alerts for data-driven articles on any region of interest.