Outstanding non-performing loans in the banking sector stood at 3.5 trillion yuan by end of June, an increase of 108.3 billion yuan from the beginning of the year, while the bad loan ratio declined to 1.86%, Liu Zhongrui, an official at the statistics department of China Banking and Regulatory Commission , told reporters in Beijing.
The regulator has been guiding banks to increase provisions and ramp up disposals of bad assets, said Liu, with the size of bad loans disposed of in the first half expected to be larger than that in the same period last year, said Liu.