BEIJING - China Development Bank (CDB), a major policy bank, reported a drop in bad loans last year.

CDB Governor Zheng Zhijie said the ratio of non-performing loans (NPL) had remained below 1 percent for 51 consecutive quarters at the end of 2017, a level markedly lower than the 1.74 percent of commercial banks in the third quarter of last year.

The bank will continue to step up risk control to ensure stable asset quality, Zheng said.

Founded in 1994, the CDB is designed to provide finance to major national projects and development strategies. It has become the world's largest development finance institution, and the largest Chinese bank for foreign investment, long-term lending, and bond issuance.

The CDB lent $17.6 billion to regions involved in the Belt and Road Initiative last year and make loan commitments worth 99.1 billion yuan ($15.65 billion). Outstanding loans to overseas businesses stood at $332.7 billion, the largest for Chinese lenders.

The bank has also channeled more energy into financing urbanization projects, emerging sectors, environmental protection and other national priorities.

The total assets of the CDB rose to 15.67 trillion yuan at the end of 2017, up from 14 trillion yuan from the previous year.