Before reviewing China’s NPL market, and perhaps to better understand the current situation, it is worth briefly reviewing the historical role of China’s “big four” commercial banks. Namely:
Bank of China;
Agricultural Bank of China;
Industrial and Commercial Bank of China; and,
China Construction Bank.
The big four were established as a result of the restructuring of the People’s Bank of China (PBOC) in the 1980s and have dominated the deposit and lending market in the People’s Republic of China (PRC) since their inception.
