Caixin OnlineFinance & EconomicsTop Stories Finance Banking Sector Sees Rise in Bad Loans
06.25.2012 19:14

Banking Sector Sees Rise in Bad Loans

Wenzhou has witnessed a worrying resurgence of NPLs, which some fear could become a nationwide problem
By staff reporters Zhang Yuzhe, Zhang Bing, Shen Hu, Wen Xiu and Zheng Fei

(Wenzhou) – The amount and ratio of non-performing loans (NPLs) in the banking sector are increasing after steadily dropping for years as major state-owned banks finished share ownership reform and went public in the early 2000s.

By late 2011, the NPL ratio for the entire banking industry stood at less than 1 percent, and while there was general agreement the figure could rise, analysts thought the change would unfold slowly.

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