Bank cards and notes are seen in this file photo. (China News Service)
(ECNS) – The ratio of non-performing loans may climb to 1.23 percent in the fourth quarter for commercial banks in China, up from 1.16 percent at the end of September, and continue to increase, according to a recent report.
China Orient Asset Management Corporation estimates that non-performing loans in the banking sector will reach 827.7 billion yuan ($133.4 billion), the report says.
The rising trend will span four to six quarters due to slower economic growth and structural adjustment.
"The bad loan ratio may peak in the middle or end of 2015, rising to 1.52 percent as the economy faces increased downward pressure," China Orient said.
Insiders say the property and industrial sectors, which have overcapacity, are the two main sources of non-performing loans.
China's economy saw its expansion rate ease to 7.3 percent in the third quarter, down from 7.5 percent in the second quarter, and 7.7 percent for all of 2013.
Copyright ©1999-2018
Chinanews.com. All rights reserved.
Reproduction in whole or in part without permission is prohibited.