China’s banks are too big to manage

Incentives for prudent risk-taking and adherence to commercial objectives are weak in China's banking system. More competition is urgently needed.

FT.com

It is easier to make money than sense out of China's banks. The four big state-owned commercial lenders make huge profits, but many who see vulnerabilities in China’s economy think these banks are the problem when they reflect distortions elsewhere. China’s banks are in fact too secure – and their performance could be improved by breaking up the 'too big to manage' entities.

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