China Tells

Recently the low CAR of China Banks has been questioned (See Article from Chinatells). Due to the lower than average ratio of Capital Adequecy, the health state of China banks are in doubt. However, such doubts are unfounded. The Non-performing Loan ratio of China banks has been lowered from 15% to less than 2% since 2004. Also the total Non Performing Loan amount has been lowered from 2 Trillion RMB to 500 Billion. In fact Chinese banks have never been in a better shape than now.

中国银行由于其偏低的资本充足率引起了投资界的紧张和怀疑。从宏观角度来看，这种怀疑是多余的。中国银行的坏账率从04年的16%一路下降，到目前的不足2%；同时坏账总额也从2万亿下降到5000亿。因此目前谈论银行业危机有点杞人忧天的味道。