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China's Banks Write Off Record $532B in Bad Loans

3/27/2025

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Summary

Story summary

China's major banks are under pressure to write off bad property loans to enhance balance sheets and support economic growth.
In 2024, banks wrote off a record ¥3.8 trillion ($532B) in bad assets, primarily from property loans.
Non-performing loan ratios are projected to stay elevated at 4-5% this year.
Regulators have emphasized the need for banks to focus on non-performing real estate loan disposals.

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Story summary

China's major banks are under pressure to write off bad property loans to enhance balance sheets and support economic growth.
In 2024, banks wrote off a record ¥3.8 trillion ($532B) in bad assets, primarily from property loans.
Non-performing loan ratios are projected to stay elevated at 4-5% this year.
Regulators have emphasized the need for banks to focus on non-performing real estate loan disposals.