1. Text: | Print|

      Lenders 'stable' amid economic rebalancing

      2014-06-18 11:03 China Daily Web Editor: Qin Dexing
      1

      Chinese banks' asset quality will remain under pressure from economic rebalancing in the next one to two years and their profitability will deteriorate because of increasing interest rate liberalization, Moody's Investors Service Inc said on Tuesday at its annual credit risk conference.

      However, most banks have the financial resources to absorb a significant amount of stress, with healthy earnings, loan-loss reserves and capital.

      Moody's also expects the government to remain supportive, which contributes to an overall stable outlook.

      "Nonetheless, we expect divergence among the banks in terms of their performance as reform and market liberalization continue. We also expect this divergence to benefit the big five banks," said Vice-President Christine Kuo.

      The big five banks are Industrial and Commercial Bank of China Ltd, China Construction Bank Corp, Agricultural Bank of China Ltd, Bank of China Ltd and Bank of Communications Ltd.

      Those five are expected to perform better than smaller ones because of their greater focus on big borrowers that are more resilient to market downturns and more likely to receive support from the government.

      "Moreover, they have entrenched franchises, which attract lower-cost deposits, and very strong liquidity positions, characterized by a low reliance on market-sensitive funds, thereby enabling them to cope, with relative ease, with periodic money market tightness in China," said Kuo.

      Last April, Moody's took rating actions on the big five with all banks' long-term deposit ratings remaining stable at A1, except for Bank of Communications, which was upgraded from A3 to A2.

      However, the baseline credit assessments, which are the standalone bank financial strength ratings, were upgraded for all five banks.

      The upgrade reflected a reallocation of the substantial systemic support available into these banks' ratings.

      Moody's is now incorporating more of that support into the ongoing support that benefits the banks' BCAs rather than the component that constitutes extraordinary support, such as would be in the case of bailing out a default.

      These major banks are seen as better prepared and more resilient to the challenges awaiting all Chinese banks - rising corporate leverage, accelerating interest rate deregulation, continuing disintermediation and volatile deposit flows.

      Comments (0)
      Most popular in 24h
        Archived Content
      Media partners:

      Copyright ©1999-2018 Chinanews.com. All rights reserved.
      Reproduction in whole or in part without permission is prohibited.

      主站蜘蛛池模板: 一级免费黄色大片| 精品日韩亚洲AV无码| 亚洲区日韩精品中文字幕| 日韩精品无码一区二区三区免费 | 日本在线高清免费爱做网站| 亚洲av中文无码乱人伦在线r▽| 老妇激情毛片免费| 免费国产成人高清视频网站| 国产精品亚洲专区无码不卡| 免费国产不卡午夜福在线| 国产精品亚洲а∨天堂2021 | 一级一黄在线观看视频免费| 亚洲国产精品一区二区三区久久 | 免费黄网站在线看| 777亚洲精品乱码久久久久久| 中文字幕免费在线看线人| 亚洲制服丝袜第一页| 日韩成人在线免费视频| 精品久久久久亚洲| 国内精品久久久久久久亚洲| 99久久国产精品免费一区二区| 亚洲AV本道一区二区三区四区| 99久久久精品免费观看国产 | 中文毛片无遮挡高清免费| 亚洲Av无码精品色午夜| 日本卡1卡2卡三卡免费| 亚洲午夜一区二区电影院| 97免费人妻无码视频| 亚洲人成欧美中文字幕| 亚洲乱亚洲乱少妇无码| 国产真人无码作爱视频免费| 亚洲伊人久久大香线蕉| 又粗又大又猛又爽免费视频| 久久精品免费观看国产| 亚洲午夜理论片在线观看| 亚洲中文字幕成人在线| 91精品全国免费观看含羞草| 亚洲精品久久无码| 久久亚洲国产中v天仙www| 无码国产精品久久一区免费 | 国产精品99精品久久免费|