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China: Bad loans threaten bank sector consolidation

By  |  August 29, 2013

Standard & Poor’s said Thursday mainland China’s banks are facing a widespread consolidation trend as non-performing loans are set to spike by the end of the year, a development that – along with the China Banking Regulatory Commission’s agenda for liberalizing interest rate setting – will likely lead to widespread consolidation throughout the sector.

S&P is predicting a “triple hit” to the market and said it sees the occurrence of bad loans rising in the future.

The credit rating agency released a survey Thursday predicting the trend.

Full Content: South China Morning Post

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