Financial China

Banking: Peering into the murk

  • Published 28 Jan 2010

The underpinnings of China’s banking system look increasingly fragile as murky dealings are exposed.

“The wind blows fiercely before heavy rains.” So runs an old Chinese saying. The recent spate of official credit tightening measures represent the wind – strenuous attempts by Beijing to control a problem before it becomes unmanageable. But if we try to judge by the strength of the wind how much rain there may be, where do we end up?