PBOC Adviser Huang Says China Underestimating Banks’ Bad Loans

People’s Bank of China adviser Huang Yiping said the country’s high leverage is a global concern and that reforms are needed to tackle risks in the banking system, which has more bad loans than official data show.

Banks are in a high-risk season, and economic threats from factory closures and job cuts are rising, Huang said Thursday at a forum in Beijing. The debt-to-GDP ratio for the non-financial sector may be higher than the official estimate of about 160 percent, said Huang, an economics professor at Peking University who doesn’t serve in a policy-making role at the central bank.

— With assistance by Yinan Zhao

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