Bad Loan Problem Spreading across Country, Banker Says

(Wenzhou) – The resurgence of bad loans is not only a regional issue but a national problem, an executive at a joint-stock bank says.

The ratio of all but two commercial banks' non-performing loans (NPLs) to small and medium-sized enterprises hit 2 percent, he said. The exceptions were China Minsheng Bank and Shenzhen Development Bank.

Ratings agency Standard & Poor's estimates that the figure will increase by two to three percentage points this year as the economic slowdown weighs on corporate balance sheets.