China Financial Supervisory Administration: The banking and insurance industry operated steadily in the second quarter, and the total assets of the banking sector increased 6.6% year on year
The Zhitong Finance App learned that on August 14, the General Administration of Financial Supervision released data on the main regulatory indicators for the banking and insurance industry for the second quarter of 2026. Data show that at the end of the second quarter of 2026, the total assets of banking financial institutions in China were 498 trillion yuan, up 6.6% year on year; the total assets of insurance companies and insurance asset management companies were 43.9 trillion yuan, up 6.2% from the beginning of the year; and the total consolidated assets of financial holding companies were 29.1 trillion yuan. Financial services in the banking and insurance industry continue to be strengthened, the quality of commercial banks' credit assets is generally stable, and liquidity indicators remain stable. The insurance industry has sufficient solvency.
The original text is as follows:
Data on the main regulatory indicators of the banking and insurance industry in the second quarter of 2026
I. The total assets of the banking and insurance industry continue to grow
At the end of the second quarter of 2026, the total local and foreign currency assets of banking financial institutions in China were 498 trillion yuan, an increase of 6.6% over the previous year. Among them, the total local and foreign currency assets of large commercial banks were 221.6 trillion yuan, up 8.5% year on year, accounting for 44.5%; total local and foreign currency assets of joint stock commercial banks were 80.4 trillion yuan, up 6.2% year on year, accounting for 16.1%.
At the end of the second quarter of 2026, the total assets of insurance companies and insurance asset management companies were 43.9 trillion yuan, up 6.2% from the beginning of the year. Among them, property insurance companies were 3.4 trillion yuan, up 8.4% from the beginning of the year; personal insurance companies were 38.7 trillion yuan, up 6.2% from the beginning of the year; reinsurance companies were 879 billion yuan, up 2.5% from the beginning of the year; and insurance asset management companies were 149.1 billion yuan, up 2.4% from the beginning of the year.
At the end of the second quarter of 2026, the financial holding company had consolidated total assets of 29.1 trillion yuan, consolidated total liabilities of 26.1 trillion yuan, and consolidated net assets of 3 trillion yuan.
II. Continued strengthening of financial services in the banking and insurance industry
At the end of the second quarter of 2026, banking financial institutions' loan balance for inclusive small and micro enterprises was 38.9 trillion yuan, up 8% year on year; the balance of inclusive agricultural loans was 15 trillion yuan, up 7.5% year on year.
In the first half of 2026, insurance companies' original insurance premium income was 3.9 trillion yuan, up 3.2% year on year; compensation and payment expenses were 1.4 trillion yuan, up 3.8% year on year; 66.8 billion new insurance policies were added, up 27.4% year on year.
3. The quality of commercial banks' credit assets is generally stable
At the end of the second quarter of 2026, the normal loan balance of commercial banks (corporate account, same below) was 241.5 trillion yuan; the non-performing loan balance was 3.7 trillion yuan, an increase of 52.3 billion yuan over the end of the previous quarter; the non-performing loan ratio was 1.52%, up 0.01 percentage points from the end of the previous quarter.
4. The overall risk compensation capacity of commercial banks is sufficient
In the first half of 2026, commercial banks achieved a cumulative net profit of 1.2 trillion yuan. At the end of the second quarter of 2026, the average return on capital was 7.72%, and the average return on assets was 0.58%.
At the end of the second quarter of 2026, commercial banks had a loan loss reserve balance of 7.6 trillion yuan; the provision coverage rate was 202.87%, and the loan provision rate was 3.08%.
At the end of the second quarter of 2026, the capital adequacy ratio of commercial banks (excluding foreign bank branches) was 15.26%, the Tier 1 capital adequacy ratio was 12.12%, and the core Tier 1 capital adequacy ratio was 10.72%.
5. Commercial bank liquidity indicators remain stable
At the end of the second quarter of 2026, the liquidity coverage rate of commercial banks was 148.53%, down 3.12 percentage points from the end of the previous quarter; the net stable capital ratio was 128.13%, up 0.43 percentage points from the end of the previous quarter; the liquidity ratio was 80.97%, up 1.22 percentage points from the end of the previous quarter; the RMB excess provision rate was 1.37%, down 0.10 percentage points from the end of the previous quarter; the deposit and loan ratio (RMB domestic caliber) was 80.08%, up 0.33 percentage points from the end of the previous quarter.
6. Adequate solvency in the insurance industry
At the end of the second quarter of 2026, the average comprehensive solvency adequacy ratio of insurance companies was 180.6%, and the core solvency ratio was 133.5%, which was higher than the regulatory standards of 100% and 50%. Among them, property insurance companies were 247.0% and 214.3%, personal insurance companies were 169.7% and 119.6%, respectively, and reinsurance companies were 213.2% and 188.2% respectively.
This article was selected from the official website of the “State Financial Supervisory Administration”. Zhitong Finance Editor: Chen Siyu.