BEIJING 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)
Trending On Reuters
RBI's Raghuram Rajan said that he wanted to hire talented external candidates and improve research quality at the central bank. The proposals would hardly seem out of place in any major institution on the planet. But at RBI, his ideas were seen by some as controversial. Full Article