Asia Becomes Embarrassing Afterthought in ANZ Results
3 May, 2016
Mixed Messages in Asia’s ECM Revival
1 June, 2016Euromoney, June 2016
The potential for a bad debt crisis among China’s leading banks is one of the darkest fears circulating the world economy today.
Corporate and local government leverage is high; there are concerns that stated NPL ratios do not reflect reality; the local debt market, though fabulously buoyant, is starting to look like an accident waiting to happen; and if China were to fall, then it would bring an awful lot of other things down with it.
In May, Euromoney spent several hours with the chairmen of two of the big four Chinese banks, and with the senior management of three. While these meetings were not for direct attribution, they do provide an interesting insight into how the biggest lenders in the country are facing questions of debt sustainability and risk management.
In summary: guarded confidence. “NPLs are surely a problem for Chinese banks,” says one of the chairmen. “But they are not as large a problem as people say.”
Full article: http://www.euromoney.com/Article/3560079/Chinas-Big-Four-ready-for-bad-debt-challenge
