China Bank Profits Face Squeeze From Tighter Rules, Fitch Says
- Credit growth in China to slow in 2018, ratings company says
- Regulators recently stepped up measures to curb financial risk
China's Credit Data Shows Signs Deleveraging Bites
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Profit margins at Chinese banks will be squeezed next year and credit growth is likely to slow as increasing regulation eats up capital, Fitch Ratings said.
The lending businesses of the country’s smaller banks face the most pressure and they will rely more on larger state-owned rivals for liquidity, the ratings company said in a statement Friday. At the same time, the shadow-banking sector, which one brokerage values at about $19 trillion, will attract even more regulatory scrutiny in 2018, Fitch said.