Chinese banks ahead of the Euro area banking system
Three of the largest Bank in the world is also located in the PRC.
The Chinese banking system for the first time became the largest in the world. This writes the Financial Times, citing its own calculations.
The total assets of Chinese banks at the end of 2016 surpassed 33 trillion dollars, thus leaving behind Eurozone banks, the assets of which edition was estimated at 31 trillion.
It is noted that the banking system of China is more than three times the country’s GDP.
It is also noteworthy that the three largest banks in the world are in China.
According to experts, this is due to the increase in lending, which the government promoted after the 2008 crisis, to weaken its effects.
While economists believe that the increase in the banking system of China is not a cause for joy because of high credit risks and the inefficient allocation of resources.
Analysts also stressed that the government often resorted to Bank loans for infrastructure development and this made the economy dependent on Bank lending.
Recall that last year, Beijing took new York as a world capital with the highest number of billionaires.
As you know, China has the world’s largest currency reserves, which exceed the reserves of Japan, Switzerland, Saudi Arabia and Russia combined.
However, in June of 2016, China is continuously reducing its reserves. In may 2016, China’s foreign exchange reserves fell to a five-year low.
It is also worth noting that China expects another slowdown in growth in 2017 to about 6.5 percent against the target range of 6.5 percent to seven percent and the actual 6.7 percent last year, said Premier of the state Council of China Li Keqiang.
However, Beijing will continue reforms to reduce financial risks and increase the debts of the business, to enhance the openness of the economy to the outside world.
