China's bad loans mount to USD 220 billion: report
China's bad loans mount to USD 220 billion: report
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A banking report said, China's bad loans totaled a whopping USD 220 billion last year with the provincial governments causing most of them due to their penchant for infrastructure overdrive. 

A report by the China Banking Association and PwC said that about 90 percent of 1,794 bankers surveyed regarded risk management from bad loan pressure as the biggest challenge last year.  

Bad loans by commercial banks totaled 1.5 trillion yuan (USD 220 billion) at the end of last year, 18.3 billion yuan more at the end of quarter three (Q3). Accordingly, about 78 percent of the bankers put improving risk management as a key task, with about 61 percent choosing to adjust the business pattern, the report said.

Lipton had estimated the total debt at 225 per cent of GDP and corporate debt at 145 percent of GDP, "which is very high by any measure". China's corporate debt was a serious and growing problem.

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