Chinese Banks Pile Up $9.4 Trillion in Excess Deposits as Borrowing Slows
Updated
Updated · Nikkei Asia · Jul 28
Chinese Banks Pile Up $9.4 Trillion in Excess Deposits as Borrowing Slows
1 articles · Updated · Nikkei Asia · Jul 28
Summary
$9.4 trillion in excess deposits over loans has built up in China’s banking system as lenders face a record cash glut.
Businesses and households are borrowing less amid rising economic uncertainty, with escalating Middle East tensions adding to caution.
China’s yearslong property downturn is deepening the pullback, as falling home prices create a persistent negative wealth effect that weighs on consumers.
The buildup underscores weak credit demand in the broader economy even as cash continues to accumulate inside the banking system.