(Fighting New Crown Pneumonia) Moody's: More Supportive Policies Will Keep Liquidity in China's Financial System Stable
China News Service, Shanghai, April 3 (Reporter Jiang Yu) Moody's released the "China Banking System Outlook Update" in Shanghai on the 3rd, stating that more supportive policies are expected to keep the liquidity of China's financial system stable.
Moody's analysis shows that the scope of economic and market turmoil caused by the new crown pneumonia epidemic has expanded and the impact has deepened. This will increase the potential risks in a highly leveraged financial system and China's support for banks may increase. The main impact of the epidemic interference on credit will be the rise in loan overdue rates in the service industry, which has been adversely affected by social restrictions, including wholesale and retail, leisure travel and other non-essential consumer goods services.
Moody's believes that the state-owned capital of China's state-owned banks remains stable, which will provide a strong buffer against its potential increase in overdue loans. The nationwide business coverage also allows state-owned banks to ensure access to low-cost deposits and support their stable Funding status. China is still committed to maintaining social and financial stability while controlling the epidemic, and the government's support for stranded banks, especially "systemically important banks" will be more and more powerful. (Finish)