China eases rules on bad-loan writedown

SHANGHAI: China has issued revised rules to make it easier for banks to write off small loans, in the latest effort to help lenders deal with an expected rise in bad loans as the economy slows

The rules, issued by the Finance Ministry and published on the website of the Jiangsu provincial finance bureau on Tuesday, said the aim was to “strengthen financial enterprises’ risk prevention and control ability.” Bankers and analysts have warned that nonperforming loans in China’s banking system are likely to rise this year as a slowing economy, rising interest rates and policymakers’ focus on reducing new credit growth is likely to pressure weaker borrowers