Banks in China record huge losses

The banks in China recorded huge bad loans in comparison to the last quarter, potentially adding pressure on regulators to further ease their de-leveraging campaign as the trade war intensifies. Non-performing loans rose 183 billion yuan ($26.6 billion) to hit 1.96 trillion yuan by the end of June, the biggest quarterly increase in data going back more than a decade, the China Banking and Insurance Regulatory Commission said in a statement. Bad loans represented 1.86% of total advances, the highest ratio since March 2009. China’s two-year crackdown on its shadow- banking sector has made it harder for weaker borrowers to refinance debt. However, regulators have started tapping the brakes on the deleveraging campaign over recent weeks as the $12 trillion economy slows and US President Donald Trump threatens to slap more tariffs on Chinese goods.