The overall asset quality has improved. According to the regulatory data, the NPL ratio of commercial banks was 1.67%, which was 0.02 percentage points lower than that at the end of last quarter. The data shows that by the end of the first half of 2022, the NPL ratios of the six major state-owned banks were all below 1.5%. The NPL ratio of Bank of Communications, Agricultural Bank, Industrial and Commercial Bank of China and China Construction Bank decreased compared with the end of last year. The NPL ratio of China Bank and Postal Savings Bank increased, reaching 1.34% and 0.83% respectively at the end of June. In the first half of 2022, the overall asset quality of the banking industry improved. The NPL ratio mentioned by banks refers to the proportion of non-performing loans.