China’s Banking Sector Faces Growing Debt Stress As Credit Card Defaults Rise Among Borrowers Aged 40 To 50

New Delhi, Oct 26: Chinese banks are facing a surge in credit card defaults from middle-aged borrowers who otherwise look like model citizens, with university educations and secure public-sector jobs, according to a report. There was a close to 50 per cent jump during the last quarter in the value of non-performing loans registered on the Banking Credit Assets Registration and Circulation Centre – China’s official platform where banks and consumer finance firms list and trade non-performing debt portfolios. The value of newly registered bad-loan portfolios reached 148.1 billion yuan ($22.2 billion) in the third quarter of 2026, including principal…