China’s Finance Minister Lou Jiwei says market mechanism and government support might help China well handle mildly rising bad loans of banks.
SOUNDBITE: LOU JIWEI, Chinese finance minister
My concerns about the rising non-performing loans are not because of the ministry’s major shareholder status in the banks, but the banks’ importance to the financial system and national economy. Most of China’s big banks are publicly traded and the Finance Ministry’s standing is not different from other investors in terms of shareholder status.
Lou says China may roll out policies towards the banks against the backdrop of a “big picture,” in the process of slashing overcapacity and overstock.