China Chart of the Week: NPLs on the Rise
Despite the tremendous ups and downs of the Chinese financial system during the past few years, the non-performing loan (NPL) ratio has remained almost unchanged. Between June of 2011 and June of 2014, the NPL ratio has only increased by 0.1 percent.
The total renminbi amount of NPLs is actually growing quite rapidly, especially over the past few quarters. However, this is masked by the large increase in total loans that has grown the denominator as quickly as the numerator.