Non-Performing Loan Transfers Reach About 341 Billion Yuan in First Three Quarters, September Sets Year-High Monthly Record

This year, financial institutions have accelerated the pace of non-performing loan transfers quarter by quarter. Yesterday, based on data disclosed by the China Banking Credit Asset Registration and Circulation Center, the total principal and interest of non-performing loans transferred in the first three quarters of 2026 came to about 341 billion yuan, with transfer volumes rising each quarter. Transfers in September alone reached 76.2 billion yuan, a year-high monthly figure. Meanwhile, the latest data released by the People's Bank of China show that loan write-offs by financial institutions in the first three quarters of this year totaled 1,270.2 billion yuan, up about 23.3% year on year. Behind the simultaneous surge in both transfers and write-offs is an proactive clearing out of bad assets by commercial banks, particularly their retail divisions, under pressure to manage asset quality. (Securities Times)