Cleaning Up The Banks, Again

If only the 2008 stimulus hadn't happened, China wouldn't be contemplating its second bank bailout in less than two decades.

China Pushes Cleanup of Banks
This month, the country's four largest state-owned lenders have started raising a planned $73 billion in debt and equity to beef up reserves. That tally is expected to jump to more than $300 billion in the next five years, according to the banking regulator. The fundraising, along with a number of so-called bad banks being set up by provinces, is aimed at clearing up the pile of nonperforming loans sitting on the banks' books.

It is one of most determined efforts ever by Beijing to restore health to the financial system, which is straining from a credit binge in recent years.

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