25.08.2010 - China: Real estate loans – a potential threat
From Luckyroom.com: The rapidly growing real estate market poses risks to the banking system in China. This is the conclusion according to information of the Chinese press regarding the “endurance tests” that applied to the largest banks in the country. The Chinese authorities ordered banks to measure their endurance, based on extreme negative scenarios for the national economy and asset markets. The most significant of these “stress tests” was a sharp fall in house prices by 50%. According to information on the Chinese newspaper “21st Century Business Herald” – which reproduced by Reuters – showed that such a crisis in the real estate market would had as a result the rapid growth of high risk mortgage loans...........................................Full Article: Source
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