A protest over the freezing of deposits by some rural banks in Henan province in the summer. The scandal was cited as an example of problems at small local banks can spread nationwide. Photo: via Reuters
A protest over the freezing of deposits by some rural banks in Henan province in the summer. The scandal was cited as an example of problems at small local banks can spread nationwide. Photo: via Reuters

China’s small lenders bear brunt of risks in banking sector as economic slowdown exposes weak fundamentals

  • Smaller banks face pressure as their bad loans are exposed to an economic slowdown caused largely by pandemic restrictions
  • Banks’ recent increase of aid to property developers under the guidance of the central government could also increase their burden

A protest over the freezing of deposits by some rural banks in Henan province in the summer. The scandal was cited as an example of problems at small local banks can spread nationwide. Photo: via Reuters
A protest over the freezing of deposits by some rural banks in Henan province in the summer. The scandal was cited as an example of problems at small local banks can spread nationwide. Photo: via Reuters
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