China banks' bad loan ratio edges up to 1 pct at end Dec

BEIJING Thu Feb 13, 2014 4:27am EST

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BEIJING Feb 13 (Reuters) - Chinese banks' non-performing loan ratio edged up to 1 percent at the end of December 2013 from 0.97 at the end of September, the country's bank regulator said on Thursday.

The weighted average capital adequacy ratio of Chinese banks was at 12.19 pct as of the end of December, up slightly from 12.18 percent at the end of September, China Banking Regulatory Commission said in a statement on its website,

In general, a higher capital adequacy ratio is seen as good for the financial system as lenders have more cash to cover the cost of unforeseen risks, benefiting depositors. The downside for investors is that a high ratio could crimp profitability.

(Reporting By Xiaoyi Shao and Jonathan Standing)

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