BEIJING — China’s top banking and insurance industry regulator said on June 19 that the two sectors have been performing on solid footing, with risks under control.
The loan quality and performance of commercial banks remained generally stable, while the insurance sector’s solvency stayed at a healthy level, the China Banking and Insurance Regulatory Commission said on its website.
At the end of May, commercial banks’ nonperforming loan ratio stood at 1.9 percent, and their provision coverage ratio, the ratio of funds set aside to cover bad loans, was 183 percent, according to the commission.
Commercial banks’ combined net profits totaled 855.5 billion yuan (about $133.7 billion) in the first five months this year, with their average return on assets standing at 1.1 percent and a capital adequacy ratio of 13.6 percent.
Insurers remained solvent, with the sector’s comprehensive solvency adequacy ratio at 248 percent at the end of May, well above the 100-percent requirement. Insurers’ total assets amounted to 17.5 trillion yuan at the end of last month.
The commission said it will continue to promote high-quality development in the sectors and maintain their bottom line of zero systemic financial risk.