China's Banks See Rise in Non-Performing Loan Ratio

Non-performing loans in China's commercial banks increased in the second quarter, indicating persistent credit risks in the banking sector.

According to China's National Financial Regulatory Administration, the non-performing loan (NPL) ratio of commercial banks stood at 1.52% at the end of June, up 0.01 percentage points compared to the first quarter.

For the same period, the total volume of non-performing loans in commercial banks reached 3.7 trillion yuan.

Despite some deterioration in loan quality, the banking sector recorded significant profits in the first half of the year. Net profit of commercial banks reached 1.2 trillion yuan.

Furthermore, at the end of June, the capital adequacy ratio of banks was 15.26%, which represents one of the key indicators of the sector's capitalization status.