China Banks ‘Take Excess Risks’

From BBC News:

Chinese banks’ surge in lending to support the government’s stimulus package is leading to excessive risk taking, said the Fitch ratings agency.

Banks lent 5.2 trillion yuan ($762bn; £489bn) in the first four months of the year, encouraged by government backing for infrastructure projects.

Ambitious profit targets also contributed to the massive volumes of money being lent, Fitch said.

Last year, the Chinese government announced a 4tn yuan stimulus package.

May 22, 2009, 5:03 AM
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Categories: Economy