The BRICS bank, also known as the New Development Bank (NDB), plans to make $5 billion in loans in 2024, according to the bank's Vice President, Zhou Qiangwu. The NDB aims to scale up its operations after being affected by the COVID-19 pandemic. The majority of investments from the bank have been directed towards India and China, both BRICS members, due to their booming economies. The NDB expects China's economy and GDP to grow by over 5% in 2024, aligning with the government's expectations. India's economy is also on the rise, with an annual GDP growth rate of around 6%. The NDB's target of $5 billion in loans for 2024 is expected to be achieved through easier loan repayments from India and China.
In a separate development, China Bohai Bank plans to sell $3.5 billion worth of assets, including non-performing loans (NPLs) and special-mention loans, to shore up its capital levels. The bank will sell these assets at a discount to bidders, including China's big four bad banks. Bohai Bank reported having 16.6 billion yuan in NPLs and 28.9 billion yuan in special mention loans at the end of last year. The sale comes as China's banks struggle with rising bad debt due to a real estate market slump and a struggling economy. Bohai Bank's bad loan ratio rose to 1.78% at the end of 2023, and its capital adequacy ratio was 11.58%.
The BRICS Bank was established in 2015 by Brazil, Russia, India, China, and South Africa. [0f58d577] [be956de4] [ec5026df]