Dealing account and drawing bad debt provision are all basic essential factors for bank to control risks. The Ministry of Finance has promulgated several Provisions on LoanLossReserves.
Then, construction loans made up around 53% of their tangible equity plus loan-lossreserves; now the figure is 65-70%.
那么,建设贷款占到有形资产和贷款损失准备金的53%;现在为65%-70%。
3
If so, firms like Capital One could look forward to sharply higher earnings as lower defaults would allow lenders to ease off on the expense of building their loan-lossreserves.