BEIJING: Industrial and Commercial Bank of China, the world's most valuable lender, currently has loan-loss provisions of about 2.5 percent, bank president Yang Kaisheng said on Monday.
Speaking on the sidelines of the national parliament meetings in Beijing, Yang said the bank's non-performing loan coverage ratio was about 260 percent.
"We are putting aside so much money to prepare for any unforeseen circumstances," Yang told reporters.
Earlier Yang said ICBC had lent 165.5 billion yuan in loans in January and February, about 10 percent or 15 billion yuan more than the same period last year.
There were widespread fears in 2011 that many loans to local government financing platforms given out as part of Beijing 4 trillion yuan stimulus package during the global financial crisis may turn sour.
But Yang said loans to the companies set up by the city and provincial authorities to finance projects remain healthy, with a non-performing loan ratio lower than the bank's overall loan book, Yang said.
The bank's NPL ratio has fallen to about 0.9 percent this year from just over 1 percent a year ago, he added.
"There are no large-scale problems with local government loans," Yang said.
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