The People's Bank of China says it will be more tolerant of sour bank loans which have been affected by the coronavirus outbreak. Photo: Bloomberg
The People's Bank of China says it will be more tolerant of sour bank loans which have been affected by the coronavirus outbreak. Photo: Bloomberg

Coronavirus: Chinese banks face test as bad debts tipped to rise while economic growth tumbles

  • China may be forced to scale back its deleveraging campaign if it wants to maintain economic momentum amid the ongoing coronavirus outbreak
  • A recent stress test by China’s central bank showed 17 of 30 local banks would fail to meet their capital adequacy ratio if growth slowed to 4.15 per cent

The People's Bank of China says it will be more tolerant of sour bank loans which have been affected by the coronavirus outbreak. Photo: Bloomberg
The People's Bank of China says it will be more tolerant of sour bank loans which have been affected by the coronavirus outbreak. Photo: Bloomberg
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