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Monday, October 26, 2015

China banks come back for more capital as bad loans pile up

http://uk.reuters.com/article/2015/10/25/uk-china-banks-idUKKCN0SJ0YH20151025

`... with bad loans up 30 percent in the first half of 2015 according to China's banking regulator, doubts are growing about the ability of some banks to withstand the economic slowdown.... China's listed commercial lenders raised $57.6 billion (£37.6 billion) last year to bolster their core capital according to Thomson Reuters data. But they may need to raise an additional 553 billion yuan (£54.7 billion) if a slowdown in the economy pushes the ratio of non-performing loans (NPLs) from 1.5 to 4 percent, according to calculations by Barclays' banking analyst Victor Wang.''

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