China’s big banks helped the economy — at their own expense
Told to advance credit to the private sector, ICBC is now facing pressure on its net interest margin, with two others seeing lending margins decline
29 August 2019 - 17:46
Beijing — China’s biggest banks responded to government demands to help spur a slowing economy. The cost of their efforts has been disappointing profits and shrinking loan margins.
Repeated calls by policy makers for banks to advance more credit to the struggling private sector and small businesses have taken a toll on the industry’s financial performance in 2019. This week, China Construction Bank and Bank of Communications posted weaker-than-expected first-half profits as lending margins declined...
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