Chinese banks' bad loan ratio at healthy level in August

BEIJING - The bad loan ratio of Chinese commercial banks remained at a healthy level in August due to strengthened efforts from financial regulators to rein in risks, data from the banking regulator showed.

The non-performing loan (NPL) ratio stood at 1.86 percent at the end of August, China Banking Regulatory Commission (CBRC) said in a statement Friday.

The NPL ratio of Chinese lenders declined for the first time since 2012 to the current level in the last quarter of 2016, an encouraging sign for the economy plagued by piling debt.

Banks are running safely and soundly with risk resistance improved and their capacity to serve the real economy strengthened, the CBRC said.

Banks' total assets reached 239 trillion yuan (about $37 trillion) at the end of August, and the provision coverage was at 175.1 percent, the data showed.

Their capital adequacy ratio stood at 13.2 percent at the end of August, according to the statement.