October 29, 2020  |  Banking

[Report] China’s state-led banking sector recap is hitting serious speed bumps

Chinese regulators are in a bind when it comes to the ongoing recapitalization of the banking system; hard choices will need to be made. Banks need to raise capital to prepare for the coming surge in nonperforming loans (NPLs), but that’s complicated by a rule prohibiting banks from selling new shares at less than the value of net assets per share (book value).

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