The IMF Just Warned of a Potential Banking Crisis in China

by Reuters
Fortune

China’s credit growth has been “very fast” by global standards, said the organization.

China’s credit growth has been “very fast” by global standards and without a comprehensive strategy to tackle the debt overhang, there’s growing risk it will have a banking crisis or sharply slower growth or both, the International Monetary Fund said.

In a working paper, the IMF said Beijing should act quickly before the problem becomes systemic, and that the problems of both creditors and debtors needed to be addressed simultaneously.

The paper is one of multiple warnings the IMF has made about the Chinese economy this year.

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