Finance minister: China can handle bad bank loans
The number of bad bank loans is increasing, but China has the ability to resolve the issue, according to China’s finance minister.
“The Chinese government’s assistance to these banks is not for the implementation of particular industrial policies ... but for an overall consideration for the fitness of the Chinese economy. In this sense, the rise of bad loans is not a disturbing problem for me,” Lou Jiwei told the fourth session of the 12th National People’s Congress (NPC) in Beijing.
After the 2008 international financial crisis, many countries’ structural economic problems were exposed, and their non performing loan ratio rose as well, Lou said.
At a press conference on the sidelines of the NPC, he said the market mechanism and government support might help China handle mildly rising bad loans of banks.
Lou said his concerns about the rising non-performing loans were not because of the ministry’s major shareholder status in the banks, but the banks’ importance to the financial system and national economy.