China’s banks are feeding unwanted assets into the country’s “shadow banking system” on an unprecedented scale, reinforcing suspicions that bank balance sheets reflect only a fraction of the actual credit risk lurking in the financial system.
Banks’ latest earnings reports only added to concerns. Despite the slowest economic growth in 13 years last year, the banking system’s official non-performing loan (NPL) ratio actually declined, renewing a debate about how reliable those figures are..
via Business feed http://www.scmp.com/business/banking-finance/article/1209823/china-balance-sheet-lending-risks-lurk-shadows
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