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China's top Banking Regulator warns of rising bad loans, credit risk-sources 

May 26, 2015

Li Zeng, Li He and Pete Sweeney, Reuters

China's top banking regulator warned of rising credit risk from real estate, local government debt and unconventional forms of finance, sources with direct knowledge told Reuters, highlighting Beijing's struggles to prevent risky debt from engulfing a stuttering economy.

The sources cited a speech given by Shang Fulin, chairman of the China Banking Regulatory Commission (CBRC), during a teleconference in early May.

The amount of non-performing loans in the first quarter has already reached 56 percent of the total amount last year, Shang said, according to the sources. Unconventional forms of credit - which usually refers to instruments like entrusted loans and letters of credit - were also on the rise, he said.

The CBRC did not respond to requests from Reuters for comment.

As China's economic growth has slowed, Beijing has struggled to balance two policy goals.

Read more: Reuters

 
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