China’s Banking Crisis Looms Like Banquo’s Ghost in Davos
Unwinding of the ‘debt supercycle’ means China could become the next big domino to fall, forcing Beijing into a devaluation
by Ambrose Evans-Pritchard, Davos
Telegraph.co.uk
Bad debts in the Chinese banking system are four or five times higher than officially admitted and pose a mounting risk to the country’s financial stability, the world’s leading expert on debt has warned.
Harvard professor Ken Rogoff said China is the last big domino to fall as the global “debt supercycle” unwinds. This is likely to expose the sheer scale of malinvestment that has built up during the country’s $26 trillion credit bubble.
Prof Rogoff said the official 1.5pc rate of non-performing loans held by banks is fictitious. “People believe that as much as they believe the GDP data,” he told the World Economic Forum in Davos.
Continue Reading at Telegraph.co.uk…
Source: http://financialsurvivalnetwork.com/2016/01/chinas-banking-crisis-looms-like-banquos-ghost-in-davos/?utm_source=rss&utm_medium=rss&utm_campaign=chinas-banking-crisis-looms-like-banquos-ghost-in-davos
