Rising bad loans shift banks' focus to risks and debt securitization

Chinese banks are enhancing their comprehensive risk management and exploring securitization as a way to dispose of nonperforming loans from their balance sheets.

The move follows a rise in bad loans at commercial banks.

Recent statistics from the China Banking Regulatory Commission show that the NPL ratio of commercial banks rose to 1.81 percent as of June 30, up 6 basis points on-quarter and 31 basis points on-year.