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Asia300

Big four China banks report first drop in bad loans in 6 years

Policy-driven capacity cuts keep industrial borrowers under stress

Major banks in China like ICBC, the world's largest by assets, have been selling off bad loans.   © Reuters

HONG KONG -- Bad loans at China's top four banks fell last year for the first time since 2011 amid pressure from regulators to clean up balance sheets and broad economic improvement.

Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China and Bank of China had a total of 765.7 billion yuan ($122 billion) in non-performing loans on their books at the end of 2017, marking a 0.2% drop on the year.

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