Global auditing firm Ernst and Young has withdrawn a report saying China's non-performing loans (NPLs) totaled over US$900 billion, apologizing for what it called an "erroneous" publication.
"As it contains errors, we are withdrawing the report," the firm said in a statement. "We apologize that this erroneous report was issued. We sincerely regret any misleading views that the report conveyed."
The size of China's bad loans is a figure of immense importance, as it serves as a measure of the banking sector's financial health.
Ernst and Young's decision came after China's central bank said the report, which claimed NPLs for the four large state-owned commercial banks totaled US$358 billion, "seriously distorted" the actual situation.
In its statement retracting the Non-Performing Loan Report, issued on May 3, Ernst and Young said a US$911 billion estimate for China's NPLs had been based on the wrong assumptions.
"Throughout the report this amount was identified as a potential future amount that includes NPLs totaling approximately US$358 billion for the big four commercial banks," it said.
"Upon further research, Ernst and Young Global finds that this number cannot be supported, and believes it to be factually erroneous," it said.
It said the report had not gone through the normal internal review and approval process before it was released to the public.
China's central bank, which was not immediately available for comment yesterday, had adopted unusually harsh vocabulary to refute Ernst and Young's claims in a statement posted on its Web site late last week.
"The report not only seriously distorts the actual assets quality of the Chinese banking sector, its statements on several financial institutions are also seriously wrong and its conclusions are absurd and incomprehensible," the People's Bank of China Web site quoted an unnamed official as saying.
Ernst and Young said the firm was alerted to the mistake by its China branch, but said it had not been approached by the Chinese central bank or other Chinese authorities on the errors.
"Quality and integrity is what we believe in, and we have to do it right," said Annesa Leung (
The company hoped the mistake would not impact the firm's business in China, she said.
Ernst and Young's report, widely quoted earlier this month, came as foreign institutions continued to move into the Chinese banking sector and as the nation's big banks sought a higher international profile.
TRAGEDY STRIKES TAIPEI: The suspect died after falling off a building after he threw smoke grenades into Taipei Main Station and went on a killing spree in Zhongshan A 27-year-old suspect allegedly threw smoke grenades in Taipei Main Station and then proceeded to Zhongshan MRT Station in a random killing spree that resulted in the death of the suspect and two other civilians, and seven injured, including one in critical condition, as of press time last night. The suspect, identified as a man surnamed Chang Wen (張文), allegedly began the attack at Taipei Main Station, the Taipei Fire Department said, adding that it received a report at 5:24pm that smoke grenades had been thrown in the station. One man in his 50s was rushed to hospital after a cardiac arrest
SAFETY FIRST: Double the number of police were deployed at the Taipei Marathon, while other cities released plans to bolster public event safety Authorities across Taiwan have stepped up security measures ahead of Christmas and New Year events, following a knife and smoke bomb attack in Taipei on Friday that left four people dead and 11 injured. In a bid to prevent potential copycat incidents, police deployments have been expanded for large gatherings, transport hubs, and other crowded public spaces, according to official statements from police and city authorities. Taipei Mayor Chiang Wan-an (蔣萬安) said the city has “comprehensively raised security readiness” in crowded areas, increased police deployments with armed officers, and intensified patrols during weekends and nighttime hours. For large-scale events, security checkpoints and explosives
PUBLIC SAFETY: The premier said that security would be tightened in transport hubs, while President Lai commended the public for their bravery The government is to deploy more police, including rapid response units, in crowded public areas to ensure a swift response to any threats, President William Lai (賴清德) said yesterday after a knife attack killed three people and injured 11 in Taipei the previous day. Lai made the remarks following a briefing by the National Police Agency on the progress of the investigation, saying that the attack underscored the importance of cooperation in public security between the central and local governments. The attack unfolded in the early evening on Friday around Taipei Main Station’s M7 exit and later near the Taipei MRT’s Zhongshan
ON ALERT: Taiwan’s partners would issue warnings if China attempted to use Interpol to target Taiwanese, and the global body has mechanisms to prevent it, an official said China has stationed two to four people specializing in Taiwan affairs at its embassies in several democratic countries to monitor and harass Taiwanese, actions that the host nations would not tolerate, National Security Bureau (NSB) Director-General Tsai Ming-yen (蔡明彥) said yesterday. Tsai made the comments at a meeting of the legislature’s Foreign Affairs and National Defense Committee, which asked him and Minister of National Defense Wellington Koo (顧立雄) to report on potential conflicts in the Taiwan Strait and military preparedness. Democratic Progressive Party (DPP) Legislator Michelle Lin (林楚茵) expressed concern that Beijing has posted personnel from China’s Taiwan Affairs Office to its
RSS