The share of non-performing loans originating from China’s commercial banks fell 0.02 basis points to 1.73% at the end of December, compared with the percentage three months earlier, according to a statement on the China Banking and Insurance Regulatory Commission (CBIRC) website ) of Friday (February 2). 11).
Unpaid bad loans in China’s commercial banking sector totaled 2.8 trillion yuan ($440.6 billion), up 13.5 billion yuan ($2.1 billion) from last year, according to a Reuters report corresponds to the end of the third quarter of 2021.
Related: China is pushing for stricter insurance regulations
In September, the CBIRC announced plans to strengthen its oversight of insurance companies to limit financial risks and released draft guidelines to achieve that goal as the country recovers from its economic struggles sparked by the COVID-19 pandemic .
The updates would change a 2010 policy. Proposed changes include requiring insurance groups to establish a clear and transparent ownership structure and put in place mechanisms to notify regulators of potential risks.
The CBIRC also wants insurance companies to improve oversight and disclosures about their non-insurance subsidiaries.
There are 12 insurance groups in China, including Ping An Insurance Group Co and Dajia Insurance Group Co., formerly Anbang Insurance Group.
Meanwhile, China’s State Market Regulatory Agency (SAMR) announced in August that it will tighten its oversight of the country’s peer-to-peer (P2P) sharing economy, which could grow by 10% every year for the next five years. Bicycles and cell phone chargers are among the most popular shared products in China.
China also announced tougher regulations limiting how long underage people can play video games this fall, and introduced a new privacy and consumer protection law in November that makes it harder than ever for big tech companies to get there to compete.
Also read: China is moving towards a fully cashless economy
The country is also moving closer to a fully cashless economy, including the recent decision by two small private Chinese banks to end note and coin-related services.
In April, Beijing-based Zhongguancun Bank will suspend cash services, including over-the-counter deposits and withdrawals and ATM cash services, while NewUp Bank of Liaoning will suspend cash services in March.