Declining personal income, repayment capabilities hit lenders’ asset quality

20250922 China banks story main

Top Chinese banks have recorded double-digit increases in bad loans in their personal lending businesses, signaling mounting risks and pressures in the world’s No. 2 economy. (Nikkei montage/Source photos by Reuters)

KENJI KAWASE

September 23, 2025 11:05 JST

TOKYO — Souring loans to retail customers have emerged as the latest headache for Chinese lenders already plagued by the country’s real estate woes, at a time when the government aims to stimulate consumption through increased borrowings.