Fitch: China's banks face capital pressures and structural risks
|The US-based Fitch ratings published their latest review on the Chinese banking sector, underscoring key downside risks exposed to the banks.
Key Quotes:
“Fitch Ratings' outlook for the Chinese banking sector in 2017 is negative, reflecting our view that weak profitability and strong credit growth will keep capitalization under pressure.”
“High and rising leverage in the corporate sector remains a key risk facing China's banks.”
“Fitch expects NPL and 'special mention' loan ratios to continue rising in 2017.”
“Bank profitability will remain lackluster and under pressure, owing to another likely cut in the benchmark one-year lending rate and further migration of deposits toward wealth management products (WMPs).“
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.