Contagion Risks Rise as China Banks Fund Each Others’ Loans

  • ‘The pace of the development is concerning,’ S&P’s Liao says
  • Wholesale funding 34% of smaller banks financing, Moody’s says

Contagion Risks Rise for Chinese Banks

China’s smaller banks have never been more reliant on each other for funding, prompting rating companies to warn of contagion risks in any crisis.

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