Chinese banks report sharp drop in non-performing loans

Chinese commercial banks reported a sharp drop in non-performing loans last year despite the impact of the global financial crisis, state media said Sunday.
Non-performing loans accounted for 2.45 percent of all loans at the end of December, a drop from 6.16 percent a year earlier, the Xinhua news agency reported, citing the China Banking Regulatory Commission.
The five main state-owned commercial banks reported a non-performing loan ratio of 2.81 percent by the end of 2008, down from 8.05 percent at the end of 2007, according to the commission.
The commission did not immediately give a reason for the improvement.
It took place alongside growing signs that China's economy is being severely impacted by the global financial crisis.