* China end-June NPL ratio rises to 1.08 pct
* Bank regulator warns of credit risks in property
(Adds details, quote)
BEIJING, July 25 Chinese banks' bad loan ratio
rose to 1.08 percent at the end of June from 1.04 percent in
March, the banking regulator said on Friday, adding to concerns
a slow economy and cooling property market could weigh on banks
and brew up financial risks.
The rise in the ratio across the whole banking sector is in
line with anecdotal evidence of an increase in bad loans seen
recently in some provinces plagued by industry overcapacity.
Some independent economists believe the ratio is far higher.
Chinese media reported on Thursday that the value of bad
loans in China's eastern Shandong province surged 25.8 percent
between January and June this year.
The China Banking Regulatory Commission (CBRC), in a
statement reviewing its work in the first half, urged lenders to
"Chinese banks must particularly monitor credit risks in the
property sector, local government financial vehicles and
industries that are suffering from overcapacity problems," CBRC
Chairman Shang Fulin said at an internal meeting, according to
The CBRC also promised to step up efforts to expand a pilot
scheme to develop private banks as part of efforts to open up
the financial sector.
Separately, the regulator announced on Friday it had
approved the setting-up of three news banks wholly funded with
capital from private firms, a step that introduces the first
private lenders into a sector dominated by state
(Reporting by Aileen Wang; Editing by Kim Coghill and Alan