You won’t believe what CBRC has to say about China’s banking system

This despite massive credit crunch in June.

“On the whole, I think the banking system is healthy,” said Shang Fulin, chairman of the China Banking Regulatory Commission.

He said several key indicators such as lending and deposit growth, capital ratio and bad asset ratio are almost the same from a year ago. Some are even performing better.

“Compared with the top 1,000 banks in the world, our indicators are higher, which means better." Shang noted.

Official data shows that in the first half of 2013, Chinese banks' net profit came to US$123 billion, up nearly 14% year-on-year. The bad asset ratio was less than 1%, much lower than the global average level.

Shang pointed out that risks are under control and that local financing is better than general ones.

“It has long duration and lower bad loan ratio. Besides, most of our local financing are invested in manufacturing projects. The growth rate of property loan is lower than general loan's. Individual loans count around 60% of the total, which basically is safe." he said.

Shang also said "shadow bank" products will bring some risks to the system but the impact won't be big because the products' proportion is small.