The ratio of bad loans originated from China’s commercial banks fell 0.02 basis points to 1.73% at end of December compared to the percentage from three months earlier, according to a statement on the China Banking and Insurance Regulatory Commission’s (CBIRC) website Friday (Feb. 11).
Unpaid non-performing loans across China’s commercial banking sector totaled 2.8 trillion yuan ($440.6 billion), up 13.5 billion yuan ($2.1 billion) from the end of the third quarter of 2021, the statement said, according to a Reuters report.
Related: China Pushes for Increased Insurance Regulations
In September, the CBIRC announced plans increase its oversight of insurance companies to limit financial risks and put out a draft guideline to achieve that goal as the country looks to recover from its COVID-19 pandemic-triggered economic struggles.
The updates would amend a 2010 policy. Among the proposed changes are requiring insurance group companies to build a clear and transparent shareholding structure and set up mechanisms to alert regulators about potential risks.
The CBIRC also wants insurance companies to improve the oversight of their non-insurance subsidiaries and make disclosures accordingly.
China has 12 insurance group companies, including Ping An Insurance Group Co and Dajia Insurance Group Co., formerly Anbang Insurance Group.
Meanwhile, in August, China’s State Administration of Market Regulation (SAMR) announced it will tighten its supervision over the country’s peer-to-peer (P2P) sharing economy, which could grow 10% every year for the next five years. Bikes and mobile phone chargers are among the most popular shared products in China.
China also announced tighter regulations that will limit how long minors can play video games this fall and implemented a new data and consumer privacy law in November makes it tougher than ever for Big Tech firms to compete there.
Also read: China Nears Fully Cashless Economy
The country also keeps moving closer to a fully cashless economy, including the recent decision by two small private Chinese banks to end services related to bank notes and coins.
In April, Beijing-based Zhongguancun Bank will end cash services, including over-the-counter deposits and withdrawals and cash services on ATM machines, while NewUp Bank of Liaoning will end its cash services in March.
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