The National Financial Regulatory Administration released key regulatory data for the banking and insurance industry in the second quarter of 2026 on August 14. The data shows that as of the end of Q2 2026, the total assets of China's banking institutions, in local and foreign currencies, reached 498 trillion yuan, marking a 6.6% year-on-year increase. The combined assets of insurance companies and insurance asset management companies stood at 43.9 trillion yuan, up 6.2% from the start of the year, while the consolidated total assets of financial holding companies were 29.1 trillion yuan. Financial services in both the banking and insurance sectors continued to strengthen, with commercial banks maintaining generally stable credit asset quality and steady liquidity indicators. The insurance industry's solvency remained adequate. The full report is as follows: Data on Key Regulatory Indicators for the Banking and Insurance Industry in Q2 2026.
Total Assets of the Banking and Insurance Sectors Maintain Growth
As of the end of Q2 2026, the total assets of China's banking institutions, in local and foreign currencies, reached 498 trillion yuan, a year-on-year increase of 6.6%. Among these, large commercial banks held total assets of 221.6 trillion yuan, growing 8.5% year-on-year and accounting for 44.5% of the total. Joint-stock commercial banks held total assets of 80.4 trillion yuan, growing 6.2% year-on-year and representing 16.1% of the total. As of the end of Q2 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. This included 3.4 trillion yuan for property insurance companies (up 8.4% from the start of the year), 38.7 trillion yuan for life insurance companies (up 6.2%), 879 billion yuan for reinsurance companies (up 2.5%), and 149.1 billion yuan for insurance asset management companies (up 2.4%). As of the end of Q2 2026, financial holding companies reported consolidated total assets of 29.1 trillion yuan, consolidated total liabilities of 26.1 trillion yuan, and consolidated net assets of 3 trillion yuan.
Strengthened Financial Services in the Banking and Insurance Sectors
As of the end of Q2 2026, the balance of inclusive small and micro enterprise loans at banking institutions was 38.9 trillion yuan, a year-on-year increase of 8%. The balance of inclusive agricultural loans was 15 trillion yuan, up 7.5% year-on-year. In the first half of 2026, the original insurance premium income of insurance companies totaled 3.9 trillion yuan, a year-on-year increase of 3.2%. Claim payments and benefit payouts reached 1.4 trillion yuan, up 3.8% year-on-year, and the number of new insurance policies was 66.8 billion, a year-on-year surge of 27.4%.
Stable Credit Asset Quality for Commercial Banks
As of the end of Q2 2026, commercial banks (on a legal entity basis, same below) held normal loans totaling 241.5 trillion yuan. Non-performing loans (NPLs) amounted to 3.7 trillion yuan, an increase of 52.3 billion yuan from the end of the previous quarter. The NPL ratio stood at 1.52%, up 0.01 percentage points from the end of the prior quarter.
Adequate Overall Risk Absorption Capacity of Commercial Banks
In the first half of 2026, commercial banks accumulated a net profit of 1.2 trillion yuan. As of the end of Q2 2026, the average return on capital was 7.72%, and the average return on assets was 0.58%. The balance of loan loss provisions at commercial banks was 7.6 trillion yuan. The provision coverage ratio was 202.87%, and the loan provision ratio was 3.08%. As of the end of Q2 2026, the capital adequacy ratio for 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%.
Stable Liquidity Indicators for Commercial Banks
As of the end of Q2 2026, the liquidity coverage ratio for commercial banks was 148.53%, down 3.12 percentage points from the end of the prior quarter. The net stable funding ratio was 128.13%, up 0.43 percentage points. The liquidity ratio was 80.97%, up 1.22 percentage points. The excess reserve ratio for RMB was 1.37%, down 0.10 percentage points. The loan-to-deposit ratio (on a domestic RMB basis) was 80.08%, up 0.33 percentage points from the end of the previous quarter.
Adequate Solvency in the Insurance Industry
As of the end of Q2 2026, the average comprehensive solvency adequacy ratio for insurance companies was 180.6%, and the core solvency adequacy ratio was 133.5%, both well above the regulatory thresholds of 100% and 50%, respectively. For property insurance companies, these ratios were 247.0% and 214.3%. For life insurance companies, they were 169.7% and 119.6%. For reinsurance companies, they were 213.2% and 188.2%.
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