“Chinese banks’ bad loans increased for a fourth straight quarter, the longest streak of deterioration since the data became available in 2004, highlighting pressures on profit growth as the economy weakens.
Non-performing loans rose by 22.4 billion yuan ($3.6 billion) in the three months ended Sept. 30, to 478.8 billion yuan, the China Banking Regulatory Commission said in a statement on its website today. Bad loans increased at all types of institutions, including the largest state-owned lenders, rural banks and foreign banks, the regulator said.
China’s banking system is grappling with rising defaults and weaker loan demand after economic growth decelerated for a seventh quarter. Combined net income growth at the nation’s 3,800 lenders slowed to 14 percent in the third quarter from 23 percent in the second, the regulator said today.”Twitter