<\/p>\n
Assets of large commercial banks grew faster than that of join-stock commercial banks.<\/p>\n
Assets held by China\u2019s banking institutions rose 8% year-on-year in Q1 2026, with large commercial banks assets\u2019 rising double-digits whilst joint stock banks grew at a slower pace.<\/p>\n
Total RMB and foreign currency assets in China\u2019s banking institutions reached $72.81t during the quarter, according to data from the National Financial Regulatory Administration (NFRA) of China.<\/p>\n
Assets of large commercial banks grew 10.6% YoY to $32.31t and accounted for 44.4% of the total.<\/p>\n
Assets of joint-stock commercial banks expanded by 5.4% YoY to $11.72t and accounted for 16.1% of the total, thet NFRA said.<\/p>\n
Loans to micro and small enterprises (MSEs) grew 9.9% YoY to $5.71t during the period, whilst agriculture-related loans rose 9.5% YoY to $2.21t.<\/p>\n
Asset quality was \u201cstable\u201d, according to the NFRA, with outstanding loans at $35.21t.<\/p>\n
The outstanding balance of non-performing loans (NPLs) of commercial banks increased by $25.64b to $544.59b in Q1.<\/p>\n
The NPL ratio of commercial banks was 1.51%, inching up 0.02 percentage points compared to the end of the previous quarter.<\/p>\n
An earlier report by Natixis Asia Research noted how the Chinese government\u2019s recent support measures have boosted banks\u2019 capital adequacy ratios, but may also be masking asset quality issues.<\/p>\n
\u201cChinese banks no longer generate organic capital due to lower profitability and asset quality issues,\u201d said Alicia Garcia Herrero, Natixis CIB chief economist for APAC & Middle East; and senior economist Gary Ng.<\/p>\n
\u201cWe estimate that China has swapped $606.46b and $576.88b in debt in 2024 and 2025, which has lifted the capital adequacy ratio by 19 bps and 13 bps respectively,\u201d said Garcia Herrero and Gary Ng.<\/p>\n
\u201cWithout government help, the capital adequacy ratio would have fallen in 2024,\u201d Garcia Herrero and Ng said.<\/p>\n
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Assets of large commercial banks grew faster than that of join-stock commercial banks. Assets held by China\u2019s banking institutions rose 8% year-on-year in Q1 2026, with large commercial banks assets\u2019 rising double-digits whilst joint stock banks grew at a slower pace. Total RMB and foreign currency assets in China\u2019s banking institutions reached $72.81t during the […]<\/p>\n","protected":false},"author":1,"featured_media":6371,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-6370","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bez-rubriki"],"featured_image_src":{"landsacpe":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2026\/07\/China-Money-6-1140x445.webp",1140,445,true],"list":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2026\/07\/China-Money-6-463x348.webp",463,348,true],"medium":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2026\/07\/China-Money-6-300x200.webp",300,200,true],"full":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2026\/07\/China-Money-6-scaled.webp",2560,1706,false]},"_links":{"self":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/6370","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/comments?post=6370"}],"version-history":[{"count":1,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/6370\/revisions"}],"predecessor-version":[{"id":6372,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/6370\/revisions\/6372"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media\/6371"}],"wp:attachment":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media?parent=6370"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/categories?post=6370"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/tags?post=6370"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}