By Reuters Staff
2 Min Read
BOAO, China, April 20 (Reuters) - China is expected to face pressure from a rebound of non-performing loans, and banks must fully evaluate the risk and be prepared in advance, a senior banking regulator said on the sidelines of the Boao Forum on Tuesday.
China has implemented monetary and fiscal policies since last year to support an economy jolted by the COVID-19 pandemic. Financial institutions were encouraged to lower rates for virus-stricken firms, and relief measures were rolled out to give borrowers breathing space during the virus crisis.
Although many small enterprises have benefited from such policies, some companies have still suffered from the pandemic, and adjustments to domestic and global supply chains are expected to cause some defaults, said Xiao Yuanqi, vice chairman of the China Banking and Insurance Regulatory Commission. (CBIRC)