PBOC denounces report on US$900b bad loan
(Xinhua)
Updated: 2006-05-12 08:44 The People's Bank of China denounced Thursday a
report by an unidentified overseas accounting company which said that the bad
loan of China's commercial banks reached US$900 billion.
An official with the People's Bank said that the company has for a long time
been engaged in accounting and auditing business in China. The so called
research report has largely distorted the fact of the capital quality of Chinese
banks, and drawn ridiculous conclusions.
He said that China's national economy has maintained stable and rapid
development, which is creating a healthy environment for thefinancial sector.
He said the Chinese government has adopted measures to prevent financial
risks, including reforming the financial mechanism, strengthening financial
supervision, introducing an open-up policy and establishing a modern enterprise
system. Therefore, China's financial industry achieved remarkable progress in
risk management and the banks' capital quality has been improved.
According to the official, by the end of March this year, the bad loan of
China's commercial banks has kept reducing. The total volume of bad loans was
1312.47 billion yuan (US$164 billion), down 13.76 billion yuan compared with the
beginning of this year. The rate of bad loan was eight percent, down 0.6 percent
compared with the beginning of this year.
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