HONG KONG/BEIJING — Earnings at China’s four leading state-owned banks are feeling the strain, weakening their ability to deal with bad loans even as Beijing needs them to lend more to support the economy.
The four banks reported record-low interest rate margins for 2024. With Beijing expected to rely on more easy money to cushion the impact of a trade war with the U.S., this response could put further pressure on lenders’ profitability.
