China Credit Card Debt Increases

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May 21 – The People’s Bank of China stated that mainland Chinese credit card debt has risen by 14.4 percent in the first quarter of the year.

Debt more than six months overdue has now reached RMB8.8 billion, and represents 3.5 percent of all credit card debt in China. Transactions during the same period totaled RMB1.49 trillion. The PBoC said that China’s banking sector is facing an increasing risk of delinquent accounts.

China has issued 2.17 billion bank cards to its population of 1.32 billion, with an increase in card issuance of 14.9 percent over the last quarter. Delinquencies have doubled in the last 12 months.

Card holders in China can face criminal prosecution if they do not settle credit cards within three months of receiving the second notification letter from their bankers.