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
OSFI Issues Results of Pilot on Climate Risk Scenario Analysis
The Office of the Superintendent of Financial Institutions (OSFI) published an update on the discussion paper that intended to engage federally regulated financial institutions and other interested stakeholders in a dialog with OSFI, to proactively enhance and align assurance expectations over key regulatory returns.
EC Issues Regulation on Adjustments to K-Factor Coefficients Under IFR
The European Commission (EC) published a report summarizing responses to the targeted consultation on the supervisory convergence and the single rulebook in the European Union (EU).
ECB Issues Opinions on Green Bonds Standard and CRR Proposals
The European Central Bank (ECB) published its opinion on a proposal for a regulation on European green bonds, following a request from the European Parliament.
ESRB Explores Policy Response to Risks Arising from Digitalization
The Advisory Scientific Committee (ASC) of the European Systemic Risk Board (ESRB) published a report that explores the expected impact of digitalization on provision of financial and banking services, and proposes policy measures to address the risks stemming from digitalization.
HKMA Consults on FIRO Code, Revises Policy on Foreign Exchange Risk
The Hong Kong Monetary Authority (HKMA) is consulting on the draft Financial Institutions (Resolution) Ordinance (Cap. 628), or FIRO, Code of Practice chapter on liquidity and funding in resolution, until March 14, 2022.
FI Publishes Multiple Regulatory and Reporting Updates
The Swedish Financial Supervisory Authority (FI) announced that the capital adequacy reporting as at December 31, 2021 must be done by February 11, 2022.
EU Authorities Address COVID-19 Reporting, MCD, and PSD2 Issues
The European Banking Authority (EBA) announced that the guidelines on the reporting and disclosure of exposures subject to measures COVID-relief measures shall continue to apply until further notice.
BSP Tackles Aspects of Lending and Islamic, Open & Sustainable Finance
The Central Bank of the Philippines (BSP) issued communications covering developments related to online lending platforms, open finance framework and roadmap, and on the expected regulations in the area sustainable finance.
US Agencies Issue Regulatory Updates, FDIC Launches Tech Sprint
The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.
EBA Issues Guide on Bank Resolvability, Consults on Transferability
The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).
