Small banks in China carry outsized risk – research

Study shows systemic risk of smaller banks snowballs during stress periods

Yuan outbalancing

Small regional banks in China pose a larger-than-expected threat to financial stability in times of stress, underlining the need for regulators to monitor more than just systemically important banks, according to new research on the Chinese banking system.

A study due to be published in the Journal of Risk later this year finds that the risk contribution of smaller Chinese banks grew disproportionately during the high-stress years 2007­–8 and 2011–12, with many overtaking the larger banks.

Thi

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: