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
EBA Proposes Guidelines for Establishing Intermediate Parent Entities
EBA issued a consultation paper on the guidelines on monitoring of the threshold and other procedural aspects of the establishment of intermediate EU parent undertakings, or IPUs, as laid down in the Capital Requirements Directive.
EC Adopts Financial Reporting Changes Arising from Benchmark Reforms
EC published Regulation 2021/25 that addresses amendments related to the financial reporting consequences of replacement of the existing interest rate benchmarks with alternative reference rates.
BIS Bulletin Examines Key Elements of Policy Response to Cyber Risk
BIS published a bulletin, or a note, that examines the cyber threat landscape in the context of the pandemic and discusses policies to reduce risks to financial stability.
HMT Updates List of Post-Brexit Equivalence Decisions in UK
HM Treasury, also known as HMT, has updated the table containing the list of the equivalence decisions that came into effect in UK at the end of the transition period of its withdrawal from EU.
EBA Issues Erratum for Technical Package on Reporting Framework 3.0
EBA published an erratum for technical package on phase 1 of the reporting framework 3.0.
APRA Publishes FAQ on Measurement of Credit Risk Weighted Assets
APRA updated a frequently asked question (FAQ), for authorized deposit-taking institutions, on the measurement of credit risk weighted assets.
EBA Publishes Risk Dashboard for Third Quarter of 2020
EBA published the quarterly risk dashboard, along with the results of the Risk Assessment Questionnaire survey among 60 banks and 15 market analysts.
ECB Analysis Shows Privacy as Biggest Concern in Use of Digital Euro
ECB concluded the public consultation on the introduction of a digital euro in EU.
ECB Analysis Shows Privacy as Biggest Concern in Use of Digital Euro
ECB concluded the public consultation on the introduction of a digital euro in EU.
ECB Finalizes Guide on Supervisory Approach to Bank Consolidation
ECB published a guide that sets out the supervisory approach to consolidation in the banking sector.
