China Everbright Bank has over the years worked hard to improve the quality of its credit assets while intensifying business development and innovation. On the one hand, it has reformed the credit examination and approval system, improved the policy on the directions of credit investment and established a risk alert system. These measures improved the comprehensive risk management system, boosted the anti-risk capacity and enhanced the quality of new loans. On the other, it has used legal litigation, debt restructuring, asset disposal and other tools to clear up the accumulated nonperforming assets. Since 2004, the bank has recovered RMB 13.9 billion in cash. As a result, the quality of its credit assets has become visibly higher and both the amount and ratio of its nonperforming loans have dropped. At the end of the third quarter of this year, the amount of nonperforming loans was RMB 1.917 billion lower than at the beginning of the year, and the ratio of nonperforming loans was 5.97 percent, or 1.61 percentage points lower than at the beginning of the year. Its ratio of nonperforming loans was lower than the average level of all commercial banks. Its credit asset provision coverage ratio was about 75 percent, which was nearly 9 percentage points higher than at the beginning of the year. As Everbright’s reform and restructuring featuring “five projects” advance, its operational indicators including the quality of assets will also continue to improve.