The aggregate bad loan ratio of Chinese commercial banks rose to 1.89% at the end of 2018, marking a 10-year high, Reuters reported Jan. 11, citing Liu Zhiqing, deputy head of the statistics department at the China Banking and Insurance Regulatory Commission.
Chinese commercial banks' total nonperforming loans amounted to 2 trillion yuan at the end of December 2018, flat with the third quarter of the same year. "Special mention" loans, which refer to loans potentially at risk of becoming bad, increased to 3.4 trillion yuan by end-December 2018, or 3.16% of the total loan volume for commercial banks, according to Liu.
The total assets of Chinese banks' increased 6.4% year over year to 261.4 trillion yuan at the end of December 2018.
As of Jan. 11, US$1 was equivalent to 6.76 Chinese yuan.