Shanghai banking industry posts healthy growth momentum in the first half: regulator

Shanghai's banking sector posted healthy growth performance in the first half of 2018, according to the local industry watchdog. 

Shanghai’s banking sector showed healthy growth in the first half of 2018, according to the local industry watchdog.

By the end of June, the total assets held by banks in the jurisdiction reached 15.1 trillion yuan (US$2.21 trillion), up by 5.5 percent year on year. 

Outstanding loans grew by 10.8 percent annually to reach 7.2 trillion yuan during the same period, the Shanghai bureau of the China Banking Regulation Commission said.

The first six months saw a total of 9.6 trillion yuan in deposits, which rose by 4.2 percent compared with twelve months prior. The non-performing loan rate stood at 0.57 percent, the same as that of the beginning of 2018.

For the second half, the regulator said they will carry on fending off financial risks and also keep a close eye on preventing the spread of social financial risks. It calls for all banking institutions in the city to "truly assume responsibility for risk prevention and control."

The watchdog noted it will continue to push forward reform and innovation in the banking industry and build a "Shanghai system" for financial technology services by focusing on relevant weak links.

To provide better financial products and services for local residents, the regulator said it will promote inclusive finance in a differentiated way and build a “Shanghai brand."

The city is also building a compliance management demonstration zone for the banking sector, and the watchdog encourages all institutions to transit from “passive compliance" to “active compliance."

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