{"id":8253,"date":"2006-06-27T05:58:39","date_gmt":"2006-06-27T12:58:39","guid":{"rendered":"http:\/\/chinadigitaltimes.net\/2006\/06\/27\/china-banks-face-increased-bad-loans-due-to-rising-rates-stronger-yuan-afx-news\/"},"modified":"2006-06-27T05:58:39","modified_gmt":"2006-06-27T12:58:39","slug":"china-banks-face-increased-bad-loans-due-to-rising-rates-stronger-yuan-afx-news","status":"publish","type":"post","link":"https:\/\/chinadigitaltimes.net\/2006\/06\/china-banks-face-increased-bad-loans-due-to-rising-rates-stronger-yuan-afx-news\/","title":{"rendered":"China banks face increased bad loans due to rising rates, stronger yuan – AFX News"},"content":{"rendered":"
From AFX News via Forbes.com:<\/p>\n
China’s banking industry faces the prospect of a significant increase in bad loans, if interest rates rise rapidly and the value of the yuan, ratings agency Standard & Poor’s<\/a> said in a report.<\/p>\n
It estimates that if the Chinese yuan appreciates by 25 pct and interest rates increase by 200 basis points, the corporate sector’s net profit could fall by about a third and the banking sector’s nonperforming loan<\/a> ratio could rise by up to nine percentage points.<\/p>\n
This scenario would materialize if both sectors fail to take any countermeasures to mitigate risks and losses, S&P said. [Full Text]<\/a><\/p><\/blockquote>\n