Chinese Banks Use Satellites to Watch Loan Items

Apr 25, 2026, 02:00
A2

Chinese Banks Use Satellites to Watch Loan Items

Introduction

Many Chinese banks now use satellites to look at things people borrow money for. This helps the banks know if the things are still there and safe. Banks started doing this in 2020. More banks started in 2023. They want to have fewer bad loans.

Main Body

In 2014, China started selling space technology. This made satellite services possible. Zhejiang E-Commerce Bank used satellites first in 2020. Ping An Bank started in 2022. In 2023, China Merchants Bank and Shanghai Pudong Development Bank also used satellites. Then Postal Savings Bank of China worked with Chang Guang Satellite Technology. They made a new satellite together. Banks use satellite pictures to check loan items. These items are farms, buildings, factories, and cars. Banks can see if the items are still there. If a person does not pay back the loan, the bank can take the item. Professor Liang Yan says this helps banks give loans to people in the country and small business owners. These people often do not have good credit records. Chinese banks have problems with bad loans. At the end of last year, 1.5% of all loans were bad. This number was lower before, only 0.9% in 2011. But it was much higher in 2005, at 12.4%. Many big banks still have many bad loans from property loans. The real estate market is not doing well. Satellites help banks check loan items better than old ways.

Conclusion

Chinese banks use satellites to watch loan items. This started in 2020 with a few banks. In 2023, many big banks use it. They do this because many loans are bad and the real estate market is weak.

Vocabulary Learning

bank (n.)
bank / a place where people keep money銀行
Example:I put my money in the bank.
building (n.)
building / a structure with walls and a roof建築物
Example:That building is very tall.
farm (n.)
farm / a place where people grow plants or keep animals農場
Example:My uncle works on a farm.
loan (n.)
loan / money that you borrow and must pay back貸款
Example:He got a loan from the bank to buy a car.
satellite (n.)
satellite / a machine that goes around Earth and sends information衛星
Example:The satellite takes pictures of the Earth.

Sentence Learning

Many Chinese banks now use satellites to look at things people borrow money for.
Time Marker: The word 'now' tells us the time of the action. It means 'at this time'.單詞 'now' 告訴我們動作發生的時間。它的意思是 '現在'。
Banks started doing this in 2020.
Time Marker: The phrase 'in 2020' tells us when the action started. It is a specific year.片語 'in 2020' 告訴我們動作開始的時間。它是一個具體的年份。
This helps the banks know if the things are still there and safe.
Connector: The word 'and' connects two ideas: 'still there' and 'safe'. It shows addition.單詞 'and' 連接兩個想法：'仍然在那裡' 和 '安全'。它表示附加。
They do this because many loans are bad and the real estate market is weak.
Reason: The word 'because' gives the reason for the action. It explains why they do this.單詞 'because' 給出動作的原因。它解釋他們為什麼這樣做。
At the end of last year, 1.5% of all loans were bad.
Prepositional Phrase: The phrase 'At the end of last year' tells us the time context. It starts with the preposition 'at'.片語 'At the end of last year' 告訴我們時間背景。它以介詞 'at' 開頭。
B2

Chinese Banks Adopt Satellite Remote Sensing to Monitor Loan Collateral and Mitigate Credit Risks

Introduction

A growing number of Chinese financial institutions are integrating satellite-based remote sensing into their credit risk assessment processes. This development, which began with early adopters in 2020 and has accelerated in 2023, aims to improve the monitoring of physical assets used as collateral for loans, particularly in the context of elevated non-performing loan ratios and a long-term decline in the real estate sector.

Main Body

The commercialization of China's space technology since 2014 enabled the development of satellite remote sensing services. Zhejiang E-Commerce Bank initiated the use of such technology in 2020, followed by Ping An Bank in 2022. In 2023, China Merchants Bank and Shanghai Pudong Development Bank began employing satellites. Most recently, the Postal Savings Bank of China collaborated with Chang Guang Satellite Technology to launch a jointly developed satellite. Banks use high-resolution satellite images to track the status of collateral assets, including agricultural land, real estate construction projects, industrial activity, and vehicles. This surveillance allows lenders to verify that the collateral remains viable for potential repossession in case of default. Professor Liang Yan of Willamette University emphasized that the goal is to reduce non-performing loans and improve credit assessment for rural and small business borrowers who may lack comprehensive traditional credit records. The adoption of space-based monitoring comes at a time of persistent challenges in China's banking sector. Non-performing loans (NPLs) stood at 1.5% at the end of the previous year, having risen from a record low of 0.9% in 2011, though still well below the 2005 peak of 12.4%. Several major banks continue to face high levels of bad assets within their property-loan portfolios, as a result of the ongoing real estate market contraction. Therefore, the satellite technology is seen as a tool to manage credit risk in an environment where traditional collateral valuation methods may be insufficient.

Conclusion

Chinese banks are increasingly using satellite remote sensing to monitor loan collateral, a practice that has expanded from early adopters in 2020 to several major institutions in 2023, amid elevated non-performing loan ratios and a struggling real estate sector.

Vocabulary Learning

collateral (n.)
property or assets pledged as security for a loan / something that you promise to give to a bank if you cannot pay back a loan抵押品；擔保物
Example:Banks use high-resolution satellite images to track the status of collateral assets.
integrate (v.)
combine or incorporate into a whole / to make something part of a larger system or process整合；融入
Example:A growing number of Chinese financial institutions are integrating satellite-based remote sensing into their credit risk assessment processes.
mitigate (v.)
make less severe / to reduce the harmful effects of something減輕；緩解
Example:Chinese banks adopt satellite remote sensing to monitor loan collateral and mitigate credit risks.
surveillance (n.)
close observation or monitoring / the act of watching someone or something carefully監視；監控
Example:This surveillance allows lenders to verify that the collateral remains viable for potential repossession.
viable (adj.)
capable of working successfully / able to be used or done effectively可行的；可持續的
Example:This surveillance allows lenders to verify that the collateral remains viable for potential repossession.

Sentence Learning

This development, which began with early adopters in 2020 and has accelerated in 2023, aims to improve the monitoring of physical assets used as collateral for loans, particularly in the context of elevated non-performing loan ratios and a long-term decline in the real estate sector.
Relative clause (which) adds extra information about the development; passive participle (used as collateral) describes the assets; linking word (particularly) introduces a specific context. This structure organizes the idea by first providing background details and then stating the main purpose.關係從句（which）補充說明發展的細節；被動分詞（used as collateral）描述資產；連接詞（particularly）引入具體背景。這種結構先提供背景資訊，再陳述主要目的，有助於清晰組織資訊。
Professor Liang Yan of Willamette University emphasized that the goal is to reduce non-performing loans and improve credit assessment for rural and small business borrowers who may lack comprehensive traditional credit records.
Noun clause (that the goal is to reduce...) reports what was emphasized; relative clause (who may lack...) specifies the type of borrowers. This structure first presents the main point (the emphasis) and then narrows down the target group.名詞從句（that the goal is to reduce...）轉述強調的內容；關係從句（who may lack...）限定借款人的類別。這種結構先說明強調的重點，再具體指出對象，使論述更精確。
Non-performing loans (NPLs) stood at 1.5% at the end of the previous year, having risen from a record low of 0.9% in 2011, though still well below the 2005 peak of 12.4%.
Participle phrase (having risen) indicates a cause-and-effect or time sequence; linking word (though) introduces a contrast. This structure organizes the idea by presenting the current figure, then the historical change, and finally a contrasting comparison.分詞短語（having risen）表示因果或時間順序；連接詞（though）引出對比。這種結構先呈現當前數據，再說明歷史變化，最後進行對比，使資訊層次分明。
Therefore, the satellite technology is seen as a tool to manage credit risk in an environment where traditional collateral valuation methods may be insufficient.
Passive voice (is seen) emphasizes the technology's perceived role; relative clause (where...) defines the environment; linking word (Therefore) signals a logical conclusion. This structure first states the conclusion, then describes the context that justifies it.被動語態（is seen）強調技術被視為的角色；關係從句（where...）界定環境；連接詞（Therefore）表示邏輯結論。這種結構先陳述結論，再描述相關背景，使推理清晰。
Chinese banks are increasingly using satellite remote sensing to monitor loan collateral, a practice that has expanded from early adopters in 2020 to several major institutions in 2023, amid elevated non-performing loan ratios and a struggling real estate sector.
Relative clause (that has expanded...) describes the practice; linking word (amid) connects the practice to the surrounding conditions. This structure first states the main action, then elaborates on its growth and the context in which it occurs.關係從句（that has expanded...）說明做法的演變；連接詞（amid）將做法與背景條件聯繫起來。這種結構先說明主要行動，再補充擴展情況及背景，使描述完整。
C2

Chinese Banks Adopt Satellite Remote Sensing to Monitor Loan Collateral and Mitigate Credit Risks

Introduction

A growing number of Chinese financial institutions are integrating satellite-based remote sensing into their credit risk assessment processes. This development, which began with early adopters in 2020 and has accelerated in 2023, aims to improve the monitoring of physical assets used as collateral for loans, particularly in the context of elevated non-performing loan ratios and a prolonged downturn in the real estate sector.

Main Body

The commercialisation of China's space technology since 2014 enabled the development of satellite remote sensing services. Zhejiang E-Commerce Bank initiated the use of such technology in 2020, followed by Ping An Bank in 2022. In 2023, China Merchants Bank and Shanghai Pudong Development Bank began employing satellites. Most recently, the Postal Savings Bank of China collaborated with Chang Guang Satellite Technology to launch a jointly developed satellite. Banks utilise high-resolution satellite imagery to track the status of collateral assets, including agricultural land, real estate construction projects, industrial activity, and vehicles. This surveillance allows lenders to verify the continued viability of collateral for potential repossession in the event of default. According to Professor Liang Yan of Willamette University, the objective is to reduce non-performing loans and enhance credit assessment for rural and small business borrowers who may lack comprehensive traditional credit records. The adoption of space-based monitoring coincides with persistent challenges in China's banking sector. Non-performing loans (NPLs) stood at 1.5% at the end of the previous year, having risen from a record low of 0.9% in 2011, though still well below the 2005 peak of 12.4%. Several major banks continue to face elevated levels of bad assets within their property-loan portfolios, a consequence of the ongoing real estate market contraction. The satellite technology is thus positioned as a tool to manage credit risk in an environment where traditional collateral valuation methods may be insufficient.

Conclusion

Chinese banks are increasingly employing satellite remote sensing to monitor loan collateral, a practice that has expanded from early adopters in 2020 to several major institutions in 2023, amid elevated non-performing loan ratios and a struggling real estate sector.

Vocabulary Learning

collateral (n.)
property pledged as security for a loan抵押品
Example:The bank required additional collateral to secure the loan.
downturn (n.)
a decline in economic or business activity衰退；低迷
Example:The real estate downturn led to a rise in loan defaults.
non-performing (adj.)
describing a loan that is not generating income or being repaid不良的；未履行的
Example:The bank's non-performing loans increased during the economic crisis.
repossession (n.)
the action of taking back property from a buyer who has defaulted收回；取回
Example:The lender initiated repossession proceedings after the borrower defaulted.
surveillance (n.)
close observation, especially for monitoring purposes監視；監控
Example:Satellite surveillance enables lenders to monitor collateral remotely.

Sentence Learning

This development, which began with early adopters in 2020 and has accelerated in 2023, aims to improve the monitoring of physical assets used as collateral for loans, particularly in the context of elevated non-performing loan ratios and a prolonged downturn in the real estate sector.
Non-restrictive Relative Clause and Reduced Relative Clause: The sentence contains a non-restrictive relative clause ('which began...2023') providing additional information about 'this development', and a reduced relative clause ('used as collateral for loans') modifying 'physical assets'. The main clause uses an infinitive phrase ('to improve...') as the object of 'aims'. The sentence ends with a complex prepositional phrase specifying context.句子包含非限制性關係從句（「which began...2023」）為「this development」提供補充資訊，以及簡化關係從句（「used as collateral for loans」）修飾「physical assets」。主句使用不定式短語（「to improve...」）作為「aims」的賓語。句子以複雜介詞短語結尾，說明背景。
Non-performing loans (NPLs) stood at 1.5% at the end of the previous year, having risen from a record low of 0.9% in 2011, though still well below the 2005 peak of 12.4%.
Participial Phrase and Concessive Clause: The sentence uses a present participial phrase ('having risen from...2011') to indicate a prior action, and a concessive clause introduced by 'though' ('though still...12.4%') to contrast with the current figure. The main clause is a simple past tense statement.句子使用現在分詞短語（「having risen from...2011」）表示先前的動作，以及由「though」引導的讓步從句（「though still...12.4%」）與當前數字形成對比。主句為一般過去時陳述。
Several major banks continue to face elevated levels of bad assets within their property-loan portfolios, a consequence of the ongoing real estate market contraction.
Appositive Noun Phrase: The sentence ends with an appositive noun phrase ('a consequence...contraction') that renames or explains the preceding clause. The main clause uses the verb 'continue to face' followed by a complex noun phrase.句子以同位名詞短語（「a consequence...contraction」）結尾，該短語對前面的從句進行重述或解釋。主句使用動詞「continue to face」，後接複雜名詞短語。
The satellite technology is thus positioned as a tool to manage credit risk in an environment where traditional collateral valuation methods may be insufficient.
Passive Voice with Relative Clause: The main clause is in passive voice ('is positioned'), followed by an infinitive of purpose ('to manage credit risk'). The sentence includes a relative clause introduced by 'where' ('where traditional...insufficient') modifying 'environment'.主句為被動語態（「is positioned」），後接目的不定式（「to manage credit risk」）。句子包含由「where」引導的關係從句（「where traditional...insufficient」），修飾「environment」。
According to Professor Liang Yan of Willamette University, the objective is to reduce non-performing loans and enhance credit assessment for rural and small business borrowers who may lack comprehensive traditional credit records.
Infinitive as Subject Complement and Relative Clause: The sentence begins with an introductory prepositional phrase. The main clause uses an infinitive phrase ('to reduce...and enhance...') as a subject complement after the linking verb 'is'. It includes a relative clause ('who may lack...records') modifying 'borrowers'.句子以引導性介詞短語開頭。主句使用不定式短語（「to reduce...and enhance...」）作為連繫動詞「is」後的主語補足語。包含關係從句（「who may lack...records」）修飾「borrowers」。