Yingkou Coastal Bank was one of two banks that suffered a run on deposits after rumours spread of a funding crunch. A spate of incidents have undermined confidence in banking institutions in China since the sudden nationalisation of Baoshang Bank last May. Photo: Reuters
Opinion
Opinion
The View
China’s banking debt crisis is a ticking time bomb that must be defused with urgent financial-sector reforms
- The spate of bank rescues, from Baoshang to HengFeng, is only the tip of the iceberg as slowing economic growth unearths more bad loans. The monetary fixes of the 1990s do not work without hypergrowth. The only solution? Unflinching banking-sector reforms
Yingkou Coastal Bank was one of two banks that suffered a run on deposits after rumours spread of a funding crunch. A spate of incidents have undermined confidence in banking institutions in China since the sudden nationalisation of Baoshang Bank last May. Photo: Reuters