The non-performing loan ratio of commercial banks stood at 1.84 percent at the end of the fourth quarter, down by 0.12 percentage points from the end of the third quarter, said the China Banking and Insurance Regulatory Commission.
Outstanding bad loans from commercial banks amounted to 2.7 trillion yuan (about 418.4 billion U.S. dollars).
The data also showed the total assets of China's banking industry reached 319.7 trillion yuan at the end of last year, up by 10.1 percent year on year.
The lenders' capital adequacy ratio and the provision coverage ratio came in at 14.7 percent and 184.5 percent, respectively.
By the end of the fourth quarter, outstanding loans to small and micro businesses extended by the banking sector amounted to 42.7 trillion yuan.