China c.bank warns of risks ahead for banks
BEIJING (Reuters) - Loan losses at Chinese banks could mount as the country's structural reforms accelerate, the central bank said on Friday.
In its financial stability report for 2010, the People's Bank of China also warned of a growing risk of asset bubbles and inflation.
The bank reaffirmed its appropriately loose monetary policy stance and said it would deploy various fiscal and monetary tools to manage inflationary expectations.
Turning to the global economy, the report warned of a potential sovereign debt crisis if major economies did not bring their budget deficits under control. Interest rates were likely to remain low for an extended period in many countries, it added.
(Reporting by Langi Chiang and Simon Rabinovitch; Writing by Alan Wheatley; Editing by Jonathan Hopfner)
(For more business news visit Reuters India)
- Tweet this
- Share this
- Digg this
- Indian diplomat Khobragade was strip-searched after arrest in U.S
- India trims perks for U.S. staff in dispute over envoy's New York arrest
- UPDATE 2-India trims perks for U.S. staff in dispute over envoy's New York arrest
- UPDATE 2-"Great Train Robber" Ronnie Biggs dies aged 84
- UPDATE 1-China tightens curbs on bitcoin trade
The Reserve Bank of India (RBI) unexpectedly kept the country's policy interest rate on hold on Wednesday, despite calling current inflation too high, citing the prospect of easing retail prices and its concerns about the weak domestic economy. Article | Full Coverage