The ratio of bad loans issued by Chinese commercial banks fell 0.02 basis points to 1.73% at the end of December compared to the percentage three months earlier, according to a statement published on the website of the China Commission of China. Banking and Insurance Regulation (CBIRC) Friday, February 12. 11).
Unpaid non-performing loans in China’s commercial banking sector totaled 2.8 trillion yuan ($440.6 billion), up 13.5 billion yuan ($2.1 billion) from the end of the third quarter of 2021, the statement said, according to a Reuters report.
Related: China pushes for increased insurance regulation
In September, the CBIRC announced its intention to increase its oversight of insurance companies to limit financial risk and issued a draft directive to achieve this goal as the country seeks to recover from its economic struggles sparked by the COVID-19 pandemic.
The updates would alter a 2010 policy. Among the proposed changes are to require insurance companies to put in place a clear and transparent shareholding structure and put in place mechanisms to alert regulators potential risks.
The CBIRC also wants insurance companies to improve oversight of their non-insurance subsidiaries and make disclosures accordingly.
China has 12 insurance companies, including Ping An Insurance Group Co and Dajia Insurance Group Co., formerly Anbang Insurance Group.
Meanwhile, in August China’s State Administration of Market Regulation (SAMR) announced it would step up its oversight of the country’s potentially growing peer-to-peer (P2P) sharing economy. by 10% each year for the next five years. Bicycles and mobile phone chargers are among the most popular shared products in China.
China also announced tougher regulations that will limit how long minors can play video games this fall and implemented a new consumer data and privacy law in November, making it more difficult than never competition for big tech companies.
Read also : China is approaching a fully cashless economy
The country also continues to move closer to a fully cashless economy, including the recent decision by two small private Chinese banks to end banknote and coin services.
In April, Beijing-based Zhongguancun Bank will end cash services, including over-the-counter deposits and withdrawals and ATM cash services, while NewUp Bank of Liaoning will end its cash services in March.