CBIRC Releases Regulatory Banking Indicators for Q2 2018
CBIRC released the key regulatory indicators for the banking sector for the second quarter of 2018. The indicators reveal that the banking industry continued to strengthen financial services while the quality of credit assets and liquidity level remained stable.
The data show that nonperforming loans (NPLs) of Chinese banks increased sharply over the previous quarter. The NPLs increased by CNY 183 billion at the end of June, to reach CNY 1.96 trillion. The data showed that the NPL ratio of commercial banks was 1.86%, representing an increase of 0.12 percentage points from the end of the previous quarter. At the end of the second quarter of 2018, the commercial bank loan-loss provisions amounted to CNY 3.50 trillion, representing an increase over the previous quarter's 1,036 billion; provision coverage ratio was 178.70% and, compared with the previous quarter, it fell 12.58%.
Moreover, at the end of the second quarter of 2018, the core tier 1 capital adequacy ratio of commercial banks (excluding foreign bank branches) was 10.65%, down by 0.06 percentage points from the end of the previous quarter, while the tier 1 capital adequacy ratio was 11.20%, down by 0.07 from the end of the previous quarter. Additionally, the capital adequacy ratio was 13.57%, with a decrease of 0.07 percentage points from the end of the previous quarter. The data also show that, at the end of the second quarter of 2018, the liquidity ratio of commercial banks was 52.42%, up by 1.02 percentage points from the end of the previous quarter.
Related Link: CBIRC Notification and Data
Keywords: Asia Pacific, China, Banking, NPLs, CET 1, Loan Loss Provisioning, Liquidity Risk, CBIRC
Previous Article
CBIRC to Speed Opening Up of Banking and Insurance SectorsRelated Articles
APRA Finalizes Guidance on Management of Climate Change Risks
The Australian Prudential Regulation Authority (APRA) released the final Prudential Practice Guide on management of climate change financial risks (CPG 229) for banks, insurers, and superannuation trustees.
European Council Adopts Position on Digital Finance Package Proposals
The European Council adopted its position on two proposals that are part of the digital finance package adopted by the European Commission in September 2020, with one of the proposals involving the regulation on markets in crypto-assets (MiCA) and the other involving the Digital Operational Resilience Act (DORA).
PRA Proposes Rulebook Changes; BoE Extends BEEDS Testing Window
The Prudential Regulation Authority (PRA) is proposing, via the consultation paper CP21/21, to apply group provisions in the Operational Resilience Part of the PRA Rulebook (relevant for the Capital Requirements Regulation or CRR firms) to holding companies.
EC Proposes New Measures Under Capital Markets Union Package
The European Commission (EC) has adopted a package of measures related to the Capital Markets Union.
EBA Publishes Standards to Calculate Risk-Weights of CIUs Under CRR
The European Banking Authority (EBA) published the final report on draft regulatory technical standards for the calculation of risk-weighted exposure amounts of collective investment undertakings or CIUs, in line with the Capital Requirements Regulation (CRR).
FED Outlines Lending Conditions and Supervisory Activities in H1 2021
The Board of Governors of the Federal Reserve System (FED) published a report that summarizes banking conditions in the United States, along with the supervisory and regulatory activities of FED.
APRA Expects Boards to Strengthen Ability to Oversee Cyber Resilience
The Australian Prudential Regulation Authority (APRA) recently completed two pilot initiatives in its 2020-2024 Cyber Security Strategy, which was published in November 2020.
FSB Updates List of Global Systemically Important Banks
The Basel Committee on Banking Supervision (BCBS) published further information related to its 2021 assessment of global systemically important banks (G-SIBs), with additional details to help understand the scoring methodology.
FASB Proposes Improvements to Credit Losses Standard
The Financial Accounting Standards Board (FASB) is consulting on an Accounting Standards Update and the associated taxonomy improvements for requirements on troubled debt restructurings and vintage disclosures under the credit losses standard (for financial instruments) topic 326.
US Agencies Issue Statement on Crypto-Asset Policy Initiatives
US Agencies issued a statement that summarizes the work undertaken during the interagency policy sprints focused on crypto-assets and provides a roadmap of future work related to crypto-assets.
