China’s banks brace for more bad loans as coronavirus-hit economy slows


The skyline of the Lujiazui financial district in Shanghai, China.

Hector Retamal | AFP | Getty Images

Chinese banks have so far emerged relatively unscathed as the coronavirus pandemic hit economies around the world — but that could change in the coming months. Rising bad loans are set to squeeze margins and reduce profits, said analysts.

China’s financial regulator warned over the weekend that commercial banks could experience a big jump in bad loans as the world’s second-largest economy slows down.

The International Monetary Fund has predicted that China’s economic growth in 2020 will moderate to 1% from last year’s 6.1%.

The China Banking and Insurance Regulatory Commission said…


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