China’s Growth Worries Local Bankers As Hedge Funds Face LiquidationRupert Hargreaves
China's Growth Worries Bankers
The “Chinese Bankers Survey Report 2015” was published by the China Banking Association (CBA) on January 24. The report focused on the operational details of the country's banking industry in 2015.
According to Red Pulse, an event-driven research firm in Shanghai covering market events impacting Chinese companies, feedback from the Chinese Bankers Survey Report indicates that expectations for bank profits over the next few years are not optimistic.
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Red Pulse's analysis shows that 80% of the survey report's respondents expect that the bank growth rate of both revenue and profits would be less than 15% over the next three years. Around 60% of the respondents to the survey forecasted growth of under 10% over the next three years.
However, just under half of the bankers surveyed for the report believed that non-performing loans would only account for between 1% and 3% of the industry's balance sheet during the same period.
China's growth is mixed at ground level
The biggest challenge China's banks now face going forward is finding new sources of growth. It's no secret that China's growth overall is slowing, and it is becoming harder for banks to find pockets of growth.
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