Foreign banks in Shanghai posted an over 6 percent rise in total assets in the first half of the year and made progress in innovation as well as deepening cooperation with Chinese banks for the Belt and Road initiative.
By June, the total assets held by foreign banks in Shanghai gained 6.4 percent year on year to 1.36 trillion yuan (US$240 billion). Their loan balances and deposit balances rose while the non-performing loan ratio fell to a two-year low of 0.51 percent. The data signaled their steady growth and that their risks were generally controllable.
The Chinese government's promotion of the Belt and Road initiative has prompted foreign banks in Shanghai to deepen cooperation with Chinese banks on projects related to it. With their built-in advantages such as international networks and integrated products, foreign banks actively helped Chinese companies to expand at home and abroad under the initiative.
Chinese and foreign banks attended a meeting on cooperation in business innovation held by Shanghai Banking Association in the first half of the year. At this meeting, eight foreign banks signed contracts with five Chinese banks to cooperate in innovation pilot reform programs.
In the first six months, three innovation pilot reform programs of foreign banks in Shanghai have been initiated and they accounted for half of the total six programs launched through the innovation supervision and interaction mechanism of the China Banking Regulatory Commission Shanghai Office.
Foreign banks had also played their part in serving the real economy. By the end of June, foreign banks in Shanghai had invested 7.9 billion yuan in the manufacturing industry, which accounted for nearly 40 percent of the new loans in the first half of the year.
