China Announces Regional, National Stress Tests [REPORT]

The Chinese Banking Regulatory Commission (CBRC) has announced that it will do regional and national stress tests this year to determine the extent of bad credit and non-performing loans on banks’ balance sheets, but it’s not clear how these tests will differ from the ones that were already going to take place.

Chinese banks already submit stress test results

“Commercial banks all have to submit stress test results to the local CBRC branch every quarter. The Big Five banks reporting a rise in their NPL ratios probably caused CBRC to put more stress on this issue,” said a banking executive in...