Property price crash threatens China banks' survival
A sharp decline in China's property prices would threaten the existence of many smaller and medium-sized banks, analysts say, with a 20% average price fall leading to a soaring number of bad loans.
The deterioration of real estate lending conditions is forcing Chinese property market analysts to consider the prospect of serious declines in asset values and what economic impact this might have.
With an oversupply of offices in certain regions and a sharply rising number of bad loans, a price crash could put at risk many smaller banks’ survival, analysts say.
One scenario analysis of the impact on China’s banks of a 20% decline in property prices, released by Standard & …
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