BEIJING : A scramble by Chinese policymakers to tackle a debt crisis in the property sector and shore up the economy is set to deal a blow to the earnings prospects for its big banks as they are pressed into the task of boosting credit demand.
The banks are also battling headwinds such as lower lending rates and pressure from the government to prop up the economy - which has been buffeted by weak demand both at home and abroad - as well as bad debt related to property developers and local government financing vehicles . China cut its one-year benchmark lending rate on Monday, which is set to further weigh on banks' NIM.
Industrial and Commercial Bank of China Ltd's revenue is estimated to fall 8.7 per cent year-on-year in the second quarter of this year, according to a median Refinitiv estimate. In the near term, banks face downside risks including from their exposure to LGFV's debt restructuring and developers' default, analysts at JPMorgan said in a research report.
इंडिया ताज़ा खबर, इंडिया मुख्य बातें
Similar News:आप इससे मिलती-जुलती खबरें भी पढ़ सकते हैं जिन्हें हमने अन्य समाचार स्रोतों से एकत्र किया है।
स्रोत: ChannelNewsAsia - 🏆 6. / 66 और पढो »