By Nasdaq

SHANGHAI -(Dow Jones)- The non-performing loan ratio in China's banking industry declined to 1.58% by the end of 2009, 0.84 percentage point lower than the figure at the beginning of 2009, China's banking regulator said Saturday.

Outstanding non-performing loans declined to CNY497.3 billion ($72.8 billion) by the end of December, CNY63 billion lower than the figure at the start of 2009, China Banking Regulatory Commission said in a statement posted on its Web site.

The CBRC said it will remain vigilant against credit risks which could be covered by fast credit growth in the last year.

Financial institutions extended CNY379.8 billion of new yuan loans in December, bringing the full-year total to CNY9.59 trillion--almost double 2008's level--data issued Friday on the People's Bank of China's Web site showed.