PwC notes bad loans pressure
Print Edition
PRESSURE from bad loans on banks in China will continue to build and is likely to extend from coastal areas to inland and western regions, a PricewaterhouseCoopers survey said yesterday.
Financial institutions expect credit quality to deteriorate as retail and manufacturing activities slow down in China, PwC said in the survey covering 44 CEOs and senior executives from banks, trusts, and online and industrial lenders.
Small businesses in Yangtze River Delta and China’s southern Pearl River Delta regions are most likely to create bad loans but risks are spreading along the coast and even to inland provinces, according to the survey.
However, banks are holding relatively large reserves against identified problem loans, PwC said.
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