Virtually all Chinese banks already set aside more money than the required minimum to compensate for bad loans. Photo: Reuters
China intends to boost bank dividends with proposed cap on bad loan provisions, but will this backfire?
- China’s Finance Ministry has proposed a new rule that would cap the amount banks have to set aside for bad loans
- Loan loss provisions should not exceed twice of the minimum regulatory level with any excess funds released as profits
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China economy
Virtually all Chinese banks already set aside more money than the required minimum to compensate for bad loans. Photo: Reuters
Car manufacturing profits in China declined 19 per cent between January and August. Photo: Xinhua
China’s industrial profits contract in August as economy battles slow growth amid trade war with US
- Profits at China’s large industrial firms fell 2 per cent in August, with a year-to-date decline of 1.7 per cent
- The National Bureau of Statistics blamed slowing sales, a drop in product prices and super typhoons that impacted manufacturing
Topic |
China economy
Car manufacturing profits in China declined 19 per cent between January and August. Photo: Xinhua