From Bloomberg News via the International Herald Tribune (link) China’s banking regulator has warned state-owned lenders, including Bank of China, for the second time in five months after discovering 750 million yuan of fraud related to bank bills. The amount is equivalent to $94 million. “Some banks and their branches are blindly developing bill business […]

From the Financial Times (link) At first glance, Beijing would appear to have tackled head-on the mountain of bad debt in its state banking system, debt which has built up over some 20 years since the government began opening the economy in the late 1970s. In 1999 the government established bad-debt disposal companies to sell […]

From the Financial Times (link) China’s total liabilities for non-performing loans may be as high as $900bn, dwarfing official estimates and outstripping the country’s massive foreign exchange reserves, according to a study of Beijing’s bad debt problem. The study, part of Ernst & Young‘s annual global survey of NPLs, says China’s big four state banks […]