<\/p>\n
The stress test found banks from poorer regions as most vulnerable.<\/p>\n
Chinese banks\u2019 top risks are when its customers are too big to fail, warned S&P Global Ratings, based on a stress test conducted by the central bank.<\/p>\n
The People\u2019s Bank of China (PBOC) tested a scenario where the top five borrowers of each surveyed lender defaulted, involving 3,235 lenders or 86% of system loans. PBOC found that banks\u2019 capital adequacy ratios would drop 3.8% percentage points (ppt) during this scenario.<\/p>\n
S&P, replicating this survey with 450 banks or 78% of system loans, assumes systemic shock to China\u2019s growth in such a scenario.<\/p>\n
“Our finding in broad strokes is that banks in China’s poorer regions are more exposed to concentration risk, and that the cash-strapped governments in these regions would find a bailout more challenging,” said Ming Tan, S&P Global Ratings credit analyst.<\/p>\n
Customer concentration risk in China is lower than in South and Southeast Asia, S&P said.<\/p>\n
On the other hand, Chinese banks breaching regulatory safeguards are not large enough to shake the system at the national level.<\/p>\n
\u201cOffenders tend to come from lower-income areas, with about two-thirds in regions where GDP per capita is below the national median level,\u201d S&P said.<\/p>\n
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The stress test found banks from poorer regions as most vulnerable. Chinese banks\u2019 top risks are when its customers are too big to fail, warned S&P Global Ratings, based on a stress test conducted by the central bank. The People\u2019s Bank of China (PBOC) tested a scenario where the top five borrowers of each surveyed […]<\/p>\n","protected":false},"author":1,"featured_media":5790,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-5789","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bez-rubriki"],"featured_image_src":{"landsacpe":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2026\/03\/China-economy-77-1140x445.jpg",1140,445,true],"list":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2026\/03\/China-economy-77-463x348.jpg",463,348,true],"medium":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2026\/03\/China-economy-77-300x200.jpg",300,200,true],"full":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2026\/03\/China-economy-77.jpg",1600,1067,false]},"_links":{"self":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/5789","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/comments?post=5789"}],"version-history":[{"count":1,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/5789\/revisions"}],"predecessor-version":[{"id":5791,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/5789\/revisions\/5791"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media\/5790"}],"wp:attachment":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media?parent=5789"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/categories?post=5789"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/tags?post=5789"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}