TSX:AX.PR.E - Post by User
Post by
Torontojayon Jul 12, 2024 12:57pm
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Post# 36130418
Chinese banks vanishing
Chinese banks vanishing The savings and loan (s&l) crisis terrorised America’s banks for years. Starting in the mid-1980s, a mix of aggressive lending growth, poor risk controls and a property downturn contributed to the collapse or consolidation of over 1,000 small lending institutions. China’s smallest banks are now suffering from many of the same ailments. But until recently few have collapsed or merged with others.
That is starting to change. In the week ending June 24th, 40 Chinese banks vanished as they were absorbed into bigger ones. Not even at the height of the s&l crisis did lenders disappear at such a clip.
Could China start a global market sell off? This is very concerning as China is large enough to impact the global economy.
Chinese 10 year bonds is at ~ 2.264 and the Central Bank rate is at 2.5%. The yield curve is still inverted but the spread is narrowing.