Inner Mongolia, Shanxi Beset by Bad Loans, Banking Sources Say

(Beijing) – Banks in the coal-rich regions of Inner Mongolia and Shanxi are dealing with high ratios of bad loans as miners deal with price slumps and a slowdown bites China's economy, banking industry sources say.

Coal prices have fallen this year to half of what they were during a 2011 peak due to oversupply caused by improved production capacity in recent years and weakened demand.