Financial China

Bank net interest income may escape unscathed

  • Published 24 Mar 2011

Banks' borrowing costs have been rising by a greater margin than lending rates due to three asymmetric interest rate hikes. But what does this mean for net-interest income?

Chinese banks have been passing on their higher costs of borrowing to individuals, mortgage borrowers and small and medium-sized enterprises (SMEs) (CC March 10 2011, Financial China). However, how much have their borrowing costs increased?

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