China commercial lenders told to safeguard asset quality

Owing to the economic slowdown, Chinese lenders have started to increase their real economy exposure, which would increase macro leverage in the short term, Sun Tianqi, head of the People’s Bank of China (PBoC) Financial Stability Bureau, said at the China Development Forum.

BEIJING: Commercial lenders must increase their loan loss provisions in advance and dispose of more non-performing loans to prevent further asset quality erosion due to the lingering effects of the Covid-19 epidemic, according to a senior central bank official.

Owing to the economic slowdown, Chinese lenders have started to increase their real economy exposure, which would increase macro leverage in the short term, Sun Tianqi, head of the People’s Bank of China (PBoC) Financial Stability Bureau, said at the China Development Forum.