The Bank of China has warned that China's largest banks are unlikely to see any growth in net profit next year, due to the pileup of bad debt and its economic slowdown. In a report released on Wednesday, it said there was "considerable uncertainty" about whether Chinese lenders would be able to raise enough capital from investors or other sources to meet their targets.
The Bank of China has warned that China's largest banks are unlikely to see any growth in net profit next year, due to the pileup of bad debt and its economic slowdown. Non-performing loans ratio will reach around 2% for listed banks, compared with around 1.59% at present, said the bank, adding that the yuan will continue to come under gradual depreciation pressure throughout next year.