AgBank dumping bad assets
Has highest NPL ratio among all 17 publicly traded banks.
Agricultural Bank of China, the country’s third-largest lender, will sell non-performing assets valued at US$1.6 billion. It will sell 19 properties used as collateral and seven loans on the Beijing Financial Assets Exchange.
Analysts said more Chinese banks might sell nonperforming assets as banks face intense pressure from badf debts amid a worsening economic slowdown.
PricewaterhouseCoopers China estimates that outstanding delinquent loans held by the top 10 listed banks came to US$96.3 billion at the end of June, up 20% from 2012.
The delinquent loan ratio rose from 1.21% in 2012 to 1.35% at the end of June. The increase indicates a possible rise in NPLs.