China banks' bad loan ratio inches up to 1.04 pct at end-March

BEIJING Thu May 15, 2014 4:34am EDT

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BEIJING May 15 (Reuters) - Chinese banks' non-performing loan ratio edged up to 1.04 percent at the end of March, a shade higher than the 1 percent at the end of last December, the country's bank regulator said on Thursday.

The weighted average capital adequacy ratio of Chinese banks fell slightly to 12.13 percent as of the end of the first quarter, from 12.19 percent at the end of December, the 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 China Economics Team)

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