The People’s Bank of China has been reviewing the best way to assess and respond to risks related to rising macro leverage and the potential increase in non-performing loans in China, as economic growth continues to rebound.
“The main risk we see right now is one, [the] macro leverage ratio is increasing,” PBoC governor Yi Gang told delegates participating in a virtual Group of 30 panel on October 18. “The other is the possibility of increasing of non-performance loans of the banking system.”
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