For now Chinese banks seem to resist the global financial crisis. Compared to American banks, the Chinese should resist far better against the falling house prices, because in China a mortgage is insured by a minimum deposit of 20-40%. In the second place the riskier loans to property developers are limited to 7% of total bank lending.
It seems the domino effect of the financial crisis will not hit the Chinese banking system as hard as in American en Western Europe.
Matthias Carchon
Source: The Economist - China's economy: domino or dynamo?
1 opmerking:
Excellent flow and clear focus. Good use of linkers.
olaf
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