China's Banking and Insurance Metrics Show Resilience in Q3 2025: NFRA Data
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China’s banking and insurance sectors maintained steady growth in the third quarter of 2025, according to the National Financial Regulatory Administration (NFRA). Key indicators reveal expanding assets, stable credit quality, and robust capital and liquidity positions.
Assets Keep Growing
ONE
By the end of Q3, total assets of Chinese banking institutions reached CNY 474.3 trillion, up 7.9% year-on-year. Large commercial banks accounted for CNY 208.1 trillion (up 10%, 43.9% of total), while joint-stock commercial banks held CNY 76.2 trillion (up 4.7%, 16.1%).
The insurance sector also expanded, with total assets of insurers and insurance asset management companies rising to CNY 40.4 trillion, a 12.5% increase since the start of the year. Life insurers accounted for CNY 35.4 trillion (+12.3%), property insurers CNY 3.2 trillion (+9.9%), reinsurers CNY 861.5 billion (+4.1%), and insurance asset management firms CNY 138.8 billion (+8.7%).
Financial Services Strengthen
TWO
Inclusive lending continued to rise, with small and micro-enterprise loans reaching CNY 36.5 trillion (+12.1% YoY) and inclusive agricultural loans at CNY 14.1 trillion (+CNY 1.2 trillion since year-start).
Insurance companies reported original premium income of CNY 5.2 trillion (+8.5%), claim and benefit payments of CNY 1.9 trillion (+7.6%), and 846 million new policies issued (+7.9%).
Credit Quality Remains Stable
THREE
Commercial banks’ non-performing loans (NPLs) totaled CNY 3.5 trillion, up CNY 88.3 billion from the previous quarter, with the NPL ratio at 1.52% (+0.03 pp). Normal loans stood at CNY 228.8 trillion, including CNY 223.7 trillion standard and CNY 5.1 trillion “special mention” loans.
Capital Adequacy and Profitability Solid
FOUR
Cumulative net profit reached CNY 1.9 trillion. Return on equity averaged 8.18%, return on assets 0.63%. Loan loss provisions totaled CNY 7.3 trillion, with a coverage ratio of 207.15% and a provision ratio of 3.14%. Total capital ratio was 15.36%, Tier 1 ratio 12.36%, and core Tier 1 ratio 10.87%.
Liquidity and Solvency Remain Healthy
FIVE
Liquidity coverage ratio stood at 149.73%, net stable funding ratio 127.67%, liquidity ratio 80.10%, RMB excess reserve 1.53%, and domestic loan-to-deposit ratio 80.46%.
Insurance solvency stayed ample: overall solvency ratio 186.3%, core solvency 134.3%. Property, life, and reinsurance firms posted comprehensive solvency ratios of 240.8%, 175.5%, 246.2%, and core solvency of 212.9%, 118.9%, 216.7%, respectively.
The NFRA data highlight a resilient financial system: steady asset growth, continued support for small businesses, and solid buffers against risk. Banks and insurers appear well-positioned to support China’s economic activity while maintaining stability and robust risk management.
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