OPINION: As China recovers from Covid-19, all eyes are on its banks' bad loans. The stock of non-performing loans rose for all of them - some more than others - but total loans went up, too. These borrowers comprise 77 per cent of non-performing loans. Over the next 12 months, around 2.5 trillion yuan (NZ$580 billion) of new non-performing loans will be generated in China's banking system, according to investment group CLSA. Rhodium Group estimates that an extra 1 trillion yuan of NPLs would require 1.5 trillion yuan of provisions.

Source: Stuff April 29, 2020 02:15 UTC