China

Issuance of structured deposits surged almost 47% to $1.4t in the year through March.

Shadow banking growth virtually stopped new contributions to total social financing.

Moody’s notes that there are limits to how much banks can substitute for lower shadow credit levels.

NPLs for the ‘Big Five’ largely fell whilst those for smaller rural commercial banks rose to 3%. As the country’s largest lenders enjoy enhanced profitability from lower bad loan levels brought about by a macro-economic recovery, smaller lenders have not emerged unscathed as they bear the brunt of defaults and rising interest rates.

The weighted average NPL ratio dropped from 1.65% in 2016 to 1.55% in 2017.

It targets growing its stake to a majority interest.

Operating income from the retail arm accounted for 37.56% of total bank income in 2017.

This follows the bank's plans to further grow its onshore business capabilities in China.

AI, facial, and voice recognition tech power the self-service branch in Huangpu district.

Net interest margins are poised to widen amidst more loans to deploy.

Assets under management exceeded $15.69t.

The banks violated proper lending practices amongst other multiple transgressions.

Accounts with specified maturity dates rose 11.8% for ICBC, 7.5% for CCB, and 6.2% for ABC.

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Intense shadow banking crackdown has reinvigorated on-balance-sheet activity. China’s banking system assets plunged from 16.5% in 2016 to 8.7% in 2017 to represent the first drop to single-digit growth in more than a decade, according to a report from Moody’s Investors Service, reflecting the ongoing transition of banks to on-balance-sheet activities like loans. Loan growth clocked in at a steady 12.1% which makes last year the first year since 2013 that loan growth has outpaced asset growth. The welcome development comes as China intensifies its shadow banking crackdown as regulators step up oversight and incorporating related rules in their Macro Prudential Assessment (MPA).

Financial investments and interbank activities were the most battered areas.