Fi­nance min­is­ter: China can han­dle bad bank loans

China Daily (Canada) - - NEWS CAPSULE -

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.

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