Beijing, September 10 (Xinhua): The quality of assets of most of China's most popular banks has improved in the first half of the year, which was evident in Its fall that does not perform loans' relationship (NPL) in contrast to the increase in proportion of the proportion of approximately half of the banks listed in the first six months of last year.

The NPL ratio of six main state banks have decreased in the first half of the year, with that of China's postal saving bank (PSBC) is the lowest at 0.83 percent. The Bank of China reported on the greatest decrease in the NPL relationship, lowered 0.16 percentage points since the end of last year.

In addition to state lenders, many sets of set securities, commercial banks based on the city and rural commercial banks also saw the quality of assets. For example, the NLP ratio of the Bank of Traders of China was 1.01 percent at the end of June, and that of the Ningbo Bank was 0.79 percent, both at low level.

The quality of improvement assets is attributable to the restructuring efforts of lenders and improve risk management.

The demand for financing of companies has risen since the beginning of the year as the economy has sustained the recovery of Covid-19. To satisfy demand, many banks have channeled credit to industries, regions, sectors, as well as high quality customers. This could help prevent financial risks and serve the real economy.

China Industrial and Commercial Bank (ICBC), China's largest commercial lender, said its NPL index was 1,54 percent in the end of June, it lowered 0.04 percentage points from the end of 2020.

While paying attention to risk management, ICBC has put more emphasis on key industries. Supported by macro policies, key regions for national strategic development and customers with good market prospects to optimize the credit structure, said Wang Jingwu, Vice President of the ICBC.

In the first half of this year, the Communications Bank approached 43.72 billion yuan (6.77 billion US dollars) of NLPS, 20 percent year After year. The ICBC dealt with NPL with a total of 84.4 billion yuan and the China Construction Bank (CCB) provided for NLPS worth 87 billion yuan, a high record for the Bank.

Many banks have increased their provision coverage, which indicates the improvement of the ability to defend against risks.

In the first half of this year, the provision coverage rates of the six main state banks. Rose compared to the end of 2020. The PSBC provision coverage rate was 421.33 percent, 13.27 highest percentage points than at the end of the previous year . Both the CCB and the Chinese agricultural bank had provision coverage rates of more than 200 percent at the end of June.

Wang noted that the impact of the pandemic in the quality of the Chinese banks have been fading, but the lenders must continue to improve the risk management capacity To safeguard the quality of assets and support high quality development. Enditem

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