{"id":23826,"date":"2017-05-01T14:05:04","date_gmt":"2017-05-01T19:05:04","guid":{"rendered":"http:\/\/olduvai.ca\/?p=23826"},"modified":"2017-05-01T14:05:16","modified_gmt":"2017-05-01T19:05:16","slug":"pboc-spins-chinas-bad-loan-data","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=23826","title":{"rendered":"PBoC Spins China\u2019s Bad-Loan Data"},"content":{"rendered":"<h3><a href=\"http:\/\/blogs.cfr.org\/geographics\/2017\/04\/27\/pbocchinabadloans\/\">PBoC Spins China\u2019s Bad-Loan Data<\/a><\/h3>\n<article>In a recent speech at Bloomberg\u2019s headquarters in New York, People\u2019s Bank of China Deputy Governor Yi Gang <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2017-04-24\/china-s-bad-loans-capital-outflows-stabilize-pboc-s-yi-says\" target=\"_blank\" rel=\"noopener noreferrer\">reassured <\/a>his audience on the level of non-performing loans (NPLs) in the Chinese banking sector.\u00a0 It had, he said, \u201cpretty much stabilized after a long period of climbing.\u00a0 That\u2019s a good development in the financial market.\u201d<span id=\"more-2977\"><\/span><\/p>\n<p>Yi was referring to NPLs as a share of total loans, which, as shown in the figure above, have stabilized over the past year.\u00a0 But this is misleading.\u00a0 NPLs have actually continued to grow\u2014by RMB 238 billion ($35 billion) in 2016, reaching a total of RMB 1.5 trillion ($220 billion).\u00a0 The reason the NPL ratio has stabilized is that <em>Chinese banks have extended more loans<\/em>, boosting the denominator\u2014not because they have reduced their exposure to bad loans.<\/p>\n<p>In short, Yi is spinning.\u00a0 China\u2019s bad-debt problem remains serious.<\/p>\n<\/article>\n","protected":false},"excerpt":{"rendered":"<p>PBoC Spins China\u2019s Bad-Loan Data In a recent speech at Bloomberg\u2019s headquarters in New York, People\u2019s Bank of China Deputy Governor Yi Gang reassured his audience on the level of non-performing loans (NPLs) in the Chinese banking sector.\u00a0 It had, he said, \u201cpretty much stabilized after a long period of climbing.\u00a0 That\u2019s a good development [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[12292,15231,6559,12395,2914,2615],"class_list":["post-23826","post","type-post","status-publish","format-standard","hentry","category-economics","tag-benn-steil","tag-emma-smith","tag-non-performing-loans","tag-npls","tag-pboc","tag-peoples-bank-of-china"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/23826","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23826"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/23826\/revisions"}],"predecessor-version":[{"id":23828,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/23826\/revisions\/23828"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23826"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23826"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23826"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}