NPL ratio hits 1.65% at the close of Q3

As of the close of the third quarter, China’s financial regulator has disclosed that the non-performing loan (NPL) ratio in the Chinese banking sector was reported at 1.65%. This figure represents the percentage of loans that are not being repaid as scheduled, reflecting the health of the banking sector.

The outstanding value of non-performing loans (NPLs) within the Chinese banking sector stood at 4 trillion yuan, equivalent to approximately $546.72 billion. This amount witnessed an increase of 183.2 billion yuan from the start of the year, indicating a notable growth in NPLs over the period.

Additionally, capital adequacy ratio for commercial banks was recorded at 14.66% at the end of the preceding quarter. This key metric is employed to assess a bank’s capital strength and its capacity to absorb potential losses, demonstrating the resilience of the banking sector.

The regulatory body has articulated its commitment to steadily advancing reforms in small and mid-sized banks. The objective is to mitigate financial risks within these institutions, underlining the importance of enhancing financial stability in this segment of the banking sector.

According to reports, the National Administration of Financial Regulation (NFRA) has intention to support the wholesome and stable progression of the property market. Simultaneously, it aims to meet the reasonable financing requirements of property developers. In the initial three quarters, banks issued 2.4 trillion yuan in property development loans. Furthermore, by the conclusion of the third quarter, the outstanding value of these loans had surged by 183% on a year-on-year basis, illustrating the growth in property-related financing.

This rewording breaks down the original information into individual paragraphs, each focusing on a specific aspect of the financial report.