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China disposes of 839 billion yuan in NPL
(Xinhua)
Updated: 2006-01-28 17:22 China's four asset management
companies (AMCs) have either written off or recovered 839.75 billion yuan (104.9
billion U.S. dollars) in non-performing assets from banks by the end of 2005,
the Chinese banking regulator reports.
The China Banking Regulatory Commission (CBRC) said in the latest report that
only 176.6 billion yuan (22 billion U.S. dollars), just over one-fifth of the
total, was recovered in cash.
The AMCs - Huarong, Cinda, Orient and Great Wall - were set up in 1999 to
manage a mountain of problem assets transferred from China's Big Four state
banks.
Chinese banks acquired huge debts after reckless lending to state-owned
enterprises in past decades, analysts said.
After lessening their financial burdens, the banks are speeding up corporate
governance-oriented reform.
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