Bad Loans Heading North

Banks in the coal-rich regions of Inner Mongolia and Shanxi are dealing with high ratios of bad loans as miners deal with price slumps largely due to the slowdown in the Chinese economy. The ratio of bad loans in Inner Mongolia reached 2.2% while those of Shanxi exceeded 5%.

Based on the fact that the bad loan figures have started to rise this year (mainly from companies in the steel, shipbuilding and photo-voltaic industries in the Yangtze River Delta), Shang Fulin, chairman of the China Banking Regulatory Commission warned banks to take measures to control risks as slower economic growth became more common in December