About 60 percent of Chinese bankers believe the growth rate in revenue and earnings of lenders will be lower than 10 percent in the next three years, a survey showed.
Meanwhile, those who foresee a bad-debt rate of 1 to 3 percent during the period rose to 40 percent, compared with 30 percent in 2014, the Hong Kong Economic Journal reported on Tuesday, citing a survey jointly conducted by PricewaterhouseCoopers and the China Banking Association.
Those expecting a bad-debt ratio below 1 percent dropped 10 percentage points to 50 percent, the survey showed.
As of the end of September last year, the non-performing loan ratio of commercial lenders stood at 1.59 percent, data from the China Banking Regulatory Commission showed.
Taking into account all write-downs, the ratio would be at about 2 percent, PwC’s China financial services partner Zhu Yu said.
The survey also found that 52.5 percent of Chinese lenders see room for improvement in internal control.
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