Chinese bank profits continue to slow as loan rates decline, regulator says

(Reuters)-21/08/2024

Chinese commercial banks’ net profit growth is continuing to slow mainly due to a decline in loan interest rates and narrowing net interest margin, a National Financial Regulatory Administration (NFRA) official said on Wednesday.

The average interest rate of new issued corporate loans in the first seven months this year fell by 39 basis points compared to the same period last year, Liao Yuanyuan said at a news briefing.

The regulator also said it would strengthen supervision of major shareholders at small- and medium-sized financial institutions to prevent financial risks.