Are China’s large banks running out of money or protesting to the government?
Are China’s large banks running out of money or protesting to the government?
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Local government debt and the real estate crisis are the biggest problems in China’s economy. Large state-owned banks struggle between survival and meeting central government mandates. Volatile political and social situations have forced the CCP to rescue the local governments and real estate. But the new rescue measures are hazardous for China’s banks. Recently, a cash squeeze caused the interest rate for interbank overnight lending to soar to 50%. Some say this is a protest by the banks. Is this a prelude to a bigger problem, such as China’s large banks stop cooperating with the central government?
