Date
20 November 2018

S&P sees big risks ahead from Chinese banks’ loans, paper says

China’s domestic banks are at risk of a significant rise in losses from loans over the next few years and some smaller lenders may face a serious downturn in their financing business and liquidity, Economic Information Daily reported Wednesday, citing a report published Tuesday on China’s 50 major banks by the rating agency Standard & Poor’s (S&P). According to the report, the latest credit spree is breeding risks as China’s economy slows and overcapacity afflicts some industries. It added that most of the 50 major banks are nearing the deposit/loan ratio cap set by regulators. S&P estimated the banks’ combined on-and-off-balance-sheet loan growth was 17.6 percent last year, the report said.

– Contact HKEJ [email protected]

TL/AC/SK

 

EJI Weekly Newsletter

Please click here to unsubscribe