China Banks Ramp Up Bad Property Loan Disposals to Boost Economy
This article is for subscribers only.
China’s big banks are accelerating a drive to write off soured property loans to clean up their balance sheets as they heed calls by policymakers to back the world’s second-largest economy.
Financial regulators have urged lenders including Industrial & Commercial Bank of China Ltd. in recent months to prioritize the disposal of non-performing real estate loans, according to people familiar with the matter. Some banks have this year doubled the annual quota at their local branches to write off such debt, the people said, asking not to be identified discussing a private matter.