Rantburg

Today's Front Page   View All of Wed 05/28/2025 View Tue 05/27/2025 View Mon 05/26/2025 View Sun 05/25/2025 View Sat 05/24/2025 View Fri 05/23/2025 View Thu 05/22/2025
2017-09-09 China-Japan-Koreas
China bank downgraded to junk status
[DAWN] China’s fifth-largest state-owned bank has had its credit rating downgraded to junk status by Moody’s, the latest sign of fragility in the country’s financial system.

The decision to downgrade Bank of Communications was based on the lender’s lack of customer deposits and over-reliance on expensive and volatile alternative sources of funding, Moody’s said Thursday.

It follows a Chinese government crackdown on banks using excessive leveraging, including unregulated "shadow banking".

"Moody’s review on BoCom was triggered by the bank’s increasing reliance on wholesale funds in recent years and declining profitability," said the credit ratings agency in a statement on Thursday.

The downgrade was driven by BoCom’s "weaker funding profile when compared to other state-owned Chinese banks," particularly weaker deposit holdings, it said.
Posted by Fred 2017-09-09 00:00|| || Front Page|| [11132 views ]  Top

07:18 trailing wife
07:14 Richard Aubrey
07:10 NN2N1
07:09 Besoeker
07:03 NN2N1
06:58 NN2N1
06:58 Besoeker
05:28 Whiskey Mike
05:23 Whiskey Mike
05:21 Whiskey Mike
05:18 Whiskey Mike
05:15 Whiskey Mike
05:13 Whiskey Mike
05:08 Whiskey Mike
05:05 Whiskey Mike
05:03 Whiskey Mike
03:23 Besoeker
02:05 Grom the Affective
02:04 Grom the Affective
01:26 49 Pan
00:22 EMS Artifact
00:16 Skidmark









Paypal:
Google
Search WWW Search rantburg.com