China’s Banking Sector Maintains Stability Amid Global Economic Slump

China’s banking sector has demonstrated remarkable resilience amidst a sluggish global economy, with total assets reaching 409.7 trillion yuan by the end of 2023 - a 10% year-on-year increase.

Key Developments in 2023

Several significant developments took place in China’s banking sector in 2023:

• The National Financial Regulatory Administration replaced the China Banking and Insurance Regulatory Commission as the primary regulator.
• Fundamental regulations for fixed asset loans, working capital loans, and personal loans were revised to promote commercial banks’ credit management and financial services.

Updates on Commercial Property Loans and Foreign Debt

Notable updates included:

• Issuance of a circular on commercial property loans, which supports the financing needs of real estate enterprises.
• Updated regulations affecting Chinese enterprises borrowing medium and long-term foreign debt.

Regulatory Reforms

Regulatory policies were adjusted to encourage international participation in China’s banking sector:

• The National Financial Regulatory Administration revised rules for non-bank financial institutions.
• Regulations were issued to strengthen network and data security management in third-party cooperation, focusing on cyber and data risk management.

Green Finance: A Growing Trend

Green finance was another notable trend in 2023, with total outstanding green loans reaching 30.08 trillion yuan by the end of the year - a 36.5% year-on-year increase. Regulators issued several regulations to support the development of green finance:

• Integrating green and low-carbon development goals into loan extension criteria.

Commitment to Sustainable Growth

The Central Financial Work Conference in October 2023 further emphasized the importance of finance supporting economic and social development, highlighting China’s commitment to sustainable growth.