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China said to be planning for lower bad loan coverage ratio.

Global Banking News-April 25, 2016--China said to be planning for lower bad loan coverage ratio

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Global Banking News - 25 April 2016

China is said to be planning for a lower bad loan coverage ratio.

Regulators in the nation are reportedly discussing a possible reduction in the amount of provisions that the country's banks must set aside for their bad loans. The news was disclosed by the chair of China Construction Bank Corp, Wang Hongzhang.

The China Banking Regulatory Commission currently sets the minimum statutory coverage ratio for bad loans at 150 percent, and this gives banks less room to smooth out their earnings after letting their coverage ratios for bad loans fall close to the regulatory minimum.

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Publication:Global Banking News (GBN)
Geographic Code:9CHIN
Date:Apr 25, 2016
Words:146
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