China Banking Stress Indicator Eased for Fifth-Straight Quarter
This article is for subscribers only.
A warning indicator for banking stress in China fell for a fifth-straight quarter, signaling that the leadership’s drive to squeeze risk from the financial system is making progress.
China’s credit-to-gross domestic product “gap” declined to 18.9 percent in the second quarter from 22.1 percent in the first three months of this year, according to data released Sunday by the Bank for International Settlements in Basel, Switzerland. That’s down from a high of 28.8 percent in the first quarter of 2016 and below the 2013 level of 19 percent.