China Too Much Like the US – Non-performing Loans at $150 Billion

Holy toledo!

China banks have 7.6% of the loans they issue come back unpaid. And that figure is down 1.3% from the beginning of the year.

Of course, China’s banks lend money out the gazoo…but, still can the banks afford to right off $150 billion worth of loans?

The vice-chairman of China’s banking industry watchdog is warning that the percentage of non-performing loans could start to rise again.

China’s banks need to do a much better job of checking credit history and managing new accounts.

I couldn’t find figures for the amount of non-performing loans for US banks.

Still…the more people who don’t pay off their loans, the higher the interest rates for those who do to make up for the losses, no?

China is learning to be too much like the US.

What do you think?