Theme of the 2016: Rising Credit Risk

A long and good post on banks and credit over at FT: Chinese banks brace for storm in face of shadow finance calm
Investment receivables are quickly becoming the fastest-growing assets on the balance sheets of most listed banks, excluding the big four, both in percentage terms and by absolute value. Their outstanding value soared to Rmb8.96tn at the end of last year, from just Rmb2.32tn at the end of 2012.

...The ongoing decline in interbank assets has largely been the result of a fall in reverse repurchase agreements, including those backed by bonds and BAs, which accounted for the largest share of interbank assets through the end of 2015. In their first quarter bank results, 14 of 16 listed banks reported a fall in reverse repos since the end of last year. Citic Bank reported the sharpest decrease among listed banks, with quarter-on-quarter growth of negative 96.3 per cent.

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