Bad Loan Rate Like to Rise, S&P Says
The ratio of non-performing loans (NPL) in the banking industry is likely to rise to between 2 and 3 percent, credit rating agency Standard & Poor's (S&P) said on August 29. In June, the ratio of bad loans was 0.96 percent. S&P senior director Liang Qiao said the government's push for interest rate liberalization and economic slowdown has hurt the profitability of bank lending. This could lead to consolidation with the big banks emerging as winners.
Original article by Caixin
