Скачать или смотреть Chinas Banking Nightmare Pandemic Relief Turns Toxic

China's banks, once hailed as saviors during the pandemic, are now facing the grim reality of a surge in bad loans from companies that received emergency assistance. The government's generous lending policies, designed to bolster the economy during COVID-19 lockdowns, have come back to haunt the financial sector, leaving banks exposed to mounting risks.

The situation is particularly dire for smaller banks, which extended a disproportionate share of pandemic-related loans to struggling businesses. These lenders are now grappling with a wave of defaults as the economy slows and interest rates rise. The consequences are dire: banks are tightening lending, exacerbating the credit crunch and hindering growth.

The once-lauded government support is now a double-edged sword, highlighting the delicate balance between providing economic stimulus and ensuring financial stability. As the echoes of the pandemic fade, China's banks are left with a sobering reminder of the potential risks involved in crisis-time lending.