When Joint-Stock Banks Shrink, Who Feels the Squeeze?

China’s second-tier national banks, the “joint-stock” banks, were among the fastest-growing in recent years but are now posting record lows in asset growth due to the PBOC’s monetary tightening efforts. As this pressure continues, with key interbank funding sources scarce and more expensive, these banks’ key customers—primarily manufacturers, property developers and local governments—will face tighter liquidity conditions and higher borrowing costs.

Posted October 18, 2017
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