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S&P Global Ratings: Loan Customer Concentration the Most Direct Risk Facing CN Banks
Recommend
15
Positive
28
Negative
14
S&P Global Ratings indicated that loan customer concentration is the most direct risk facing Chinese banks. The agency conducted a scenario analysis, assuming that the top five borrowers of each surveyed bank default.

Based on 2024 financial data, the banks' capital adequacy ratio would have dropped by 3.8 ppts to 11.9%. For 30% of the banks, additional loss provisions could exceed annual pretax earnings. However, capital buffers and external support will maintain their rating stability.

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