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Bad loans in China’s banking system mount, rise 3.6 per cent in second quarter
Chinese banks have reported an increase in bad debts and a decline in capital adequacy ratio in the second quarter, as the year-long trade war has hit the country’s economy hard. Total non-performing loans in the mainland’s banking system rose to 2.235 trillion yuan (US$316.6 billion) during the three months to June, up 78.1 billion yuan, or 3.6 per cent from the first quarter of this year. The non-performing loan ratio edged up by a marginal 0.01 percentage points to 1.81 per cent during the quarter, according to data posted on the China Banking and Insurance Regulatory Commission’s (CBIRC) website on Monday ... (full story)