An official from China Banking Regulatory Commission says the overall risk of the banking industry was “under control”.
SOUNDBITE(CHINESE) WANG SHENGBANG, China Banking Regulatory Commission
“Generally speaking, the performance of banking industry is stable and risks are under control. the non-performing level and the overall non-performing level of oversupplied industries stand at 1.6 percent and 1.7 percent respectively. ”
According to the banking regulatory commission, non-performing loans by banks have been rising, as many sectors have felt the pains of the slowing economy.
The increase in bad loans came as China moved to reduce the capacity of oversupplied industries and close “zombie companies,” which only survive thanks to bailouts.