Chinese commercial banks will be given more power to write off bad loans, the 21st Century Business Herald reported Thursday, citing rules released by the finance ministry. The rules will relax requirements on the recourse period and quotas for bad loan write-offs, and help banks develop their micro-lending businesses. For instance, banks can write off bad loans of up to 10 million yuan (US$1.64 million) given to small and medium-sized enterprises or agriculture-related companies if the loans could not be recovered after more than one year’s recourse. Previously, the maximum was 5 million yuan.
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