Default on Auto Loans Reaches Junk Yard Levels
Chinese banks have a junk yard full of people defaulting on car loans than they can’t pay.
The bad debt on car loans has reached 100 billion yuan ($12.5 billion).
China’s four biggest banks – China Construction Bank, the Bank of China, the Industrial and Commercial bank of China and the Agricultural Bank of China own 81% of the debt.
I wonder if those people who threw all that money at ICBC are wanting their money back.
The National Development and Reform Commission says that some car buyers even provided false information on their applications. Even…is he surprised?
China does not have a credit rating system…but it’s going to need one and quickly…and this first bunch of defaulters can find themselve in the 500s, eh?
All seriousness aside, China’s banks have been throwing way too much money at way too many people and companies. Sooner or later, there has to be an accounting and it ain’t gonna be pretty, I think.
What do you think?
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