Posted 11/23/2023, 6:30:21 AM
Chinese Lawmakers Warn of Growing Financial Risks for Small Banks, Call for Reforms to Address Bad Loans and Inflated Data
- China's lawmakers issued rare warning about inflated, inaccurate data on assets of small and medium banks that does not reflect actual situation
- They called for interventions to speed up disposal of bad loans and consolidate capital at these banks to prevent financial risks
- Property slump and rising local debts plagued banks in past year; non-performing loan ratio understates problem due to evergreening
- Lawmakers said more action needed to address real estate debt risks and prevent financial corruption
- They recommended Central Bank study financing difficulties of SMEs and develop methods to effectively provide them funds