Business, 10.08.2021 01:00 diegocazador67
An article in the Wall Street Journal in 2016 noted that banks in China have been experiencing problems with business borrowers defaulting on loans and have had difficulty attracting enough deposits to fund new loans.
Source: Anjani​ Trivedi, "Why ​China's Big Banks​ Aren't Looking So Large" Wall Street Journal​, May​ 3, 2016.
Are these problems likely to matter for the future growth of the Chinese​ economy?
A. ​No; China's banks have sufficient reserves.
B. ​Yes; high default rates and the lack of deposits will lead to lower interest rates in​ China, thus slower growth.
C. ​No; China has mostly small banks which would not be harmed much by defaults on loans.
D. ​Yes; banks will have less funds available and will be hesitant to make loans to Chinese businesses.
Answers: 3
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An article in the Wall Street Journal in 2016 noted that banks in China have been experiencing probl...
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