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A Negative Outlook for Chinese Banks
The drivers are mixed operate environment and asset quality. Funding and liquidity as well as capital are likely to be stable also consistent with our global view what made that difference for us is the view on profitability which is likely to deteriorate. As a result of monetary policy easing interest rates have been declining in China that's hurting Chinese banks profitability. We expect higher interest rates will boost profitability through expanding net interest margins at most Asian banks.