On Breakingviews – Not all Chinese bank borrowers are made equal, say petesweeneypro and cbeddor:
FILE PHOTO: Industrial and Commercial Bank of China Ltd 's leaflets are displayed at its branch in Beijing, China, March 30, 2016. REUTERS/Kim Kyung-Hoon/File Photo
Officials often view small Chinese companies as proxies for the private sector, which accounts for more than 60 percent of GDP. State-owned banks prefer to play it safe by lending to government-backed clients. In the past, non-bank financial institutions filled some of the gap. However, an ongoing crackdown on shadow banking, since 2017 has choked off this source of credit.
Small companies are more prone to fail at short notice without much collateral to recover. To compensate, regulators have said they will tolerate higher non-performing loan rates among such borrowers, but banks are adding cushion. ICBC reported that it lifted such allowances to 176 percent of its non-performing loans at the end of last year, compared to 154 percent a year earlier. China Construction Bank lifted its ratio to 208 percent, from 171 percent in 2017.
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Not all Chinese bank borrowers are made equalGiants like the $290 bln ICBC are ramping up loans to small business at the behest of Beijing. That will check favouritism toward big state enterprises. But it ignores the perverse incentives at work within the banks and it’s a misguided way to stimulate private investment.
Weiterlesen »
Trump: Google CEO 'totally committed' to U.S., not Chinese, militaryDonald Trump met with Google CEO Sundar Pichai today amid growing Pentagon criticism that the company is pursuing research projects in China while withdrawing from work with the U.S. Defense Department
Weiterlesen »
Analysis | The Chinese proverb that Russia cited to respond to the Mueller report does not appear to be a Chinese proverbAnalysis: The Chinese proverb that Russia cited to respond to the Mueller report does not appear to be a Chinese proverb
Weiterlesen »
'Racism And Sexism Come Together': Inside Australia's Far Right'It's not only sexism and it’s not only racism, and it’s not only Islamophobia, but it’s an amplification of all those phenomena.”
Weiterlesen »
Pence Gives Boeing's Super Rocket Thumbs Up, Directs NASA To Accelerate Moon WorkThe Trump administration wants American astronauts back on the Moon before Chinese astronauts get there, and further delays in Boeing's Space Launch System will not be tolerated.
Weiterlesen »
Grindr stokes bad blood in U.S.-China relationshipThe dating app’s Chinese ownership has been flagged as a U.S. security risk, Reuters reports. That ought not be a surprise given the potential to use hook-up data for Kompromat. But amid a trade war, this jilting move is likely to make U.S.-China relations even rockier.
Weiterlesen »
Opinion | The lack of accountability in Chicago is due to Rahm Emanuel not Jussie SmollettOpinion | Mikki Kendall: Jussie Smollett is not the best example of the lack of accountability in Chicago. Mayor Rahm Emanuel is. - NBCNewsTHINK
Weiterlesen »
The most gay-friendly city in America might surprise you (and it’s not San Francisco)A new survey shows that cities across the U.S. have been rolling out the rainbow carpet.
Weiterlesen »
No, We Still Do Not Have Hormonal Birth Control For MenThe research is still a ways off on having a reliable 'pill for men'
Weiterlesen »