Analysts suggest that bad loans will continue to pose a challenge for China's biggest banks in 2016. [File Photo: 163.com]
According to a report by Bloomberg, some analysts suggest bad loans will continue to pose a challenge for China's biggest banks this year.
Official data shows bad loans rose to a seven-year high of 1.2 trillion yuan or about 184 billion U.S. dollars as of the end of September.
Bloomberg also says China's five largest banks may report combined profits of 936 billion yuan or 144 billion U.S. dollars this year, an increase of 1.4 percent from a year earlier.
The survey suggests earnings will be capped by the country's economic slowdown, bad debts, and shrinking margins.
Currently, China's banking regulator is continuously monitoring the banking system's bad loans not only on a monthly or quarterly basis, but on a ten day basis.
For more on this topic, CRI's Bob Jones earlier spoke with John Ross, senior fellow with the Chongyang Institute for Financial Studies at Renmin University.
