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Foreign banks operating in China are posting good profits, thanks to the strong growth of Chinese economy.
In the third quarter of the year, 53 foreign banks operating ineast China's Shanghai recorded after-tax profits totaling 55.7 million U.S. dollars, according to the People's Bank of China, thecountry's central bank.
The 53 foreign banks had assets worth 23.176 billion U.S. dollars at the end of September, accounting for half of the total assets of foreign banks operating in China.
Sources from the central bank noted that the stated profit figure were attained despite a raised risk reserve newly imposed by the central bank.
The strong profit base indicated the orderly and stable financial environment in Shanghai and China, as against the drastic financial situation in neighboring countries and regions, sources said.
By the end of September, the 53 foreign banks in Shanghai recorded a loan balance of 9.81 billion U.S. dollars, and a debt balance of 22.127 billion U.S. dollars, remarkably both showing anincrease on the previous quarter.
Foreign banks, however, have the same concerns as their Chinesecounterparts over weak demand for loans due to robust growth of foreign direct investment and over supply of foreign currencies.
The situation is expected to be eased by the weak dollar and increased demand for foreign currencies brought about by domestic economic growth, sources added.
(Xinhua News Agency October 31, 2001)
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