Value of non-performing loans (NPL) of listed Chinese banks 2008-H1 2023
In 2023, the value of non-performing loans of listed banks in China amounted to 2.13 trillion yuan. A high non-performing loan ratio across the banking sector of a country could constitute a systemic risk. The Chinese leadership had been aware of the risk stemming from bad loans on balance sheets. Therefore, they introduced a debt-equity swap program to clean up the bank's balance sheets.