Senior bankers in China remain confident that the economy will continue to provide a favourable backdrop for the banking industry, despite a slowdown in growth. However, some concede that a more complex economic environment in China and abroad will bring greater challenges to the banking system, especially in risk management.
Qian Wenhui, executive director and executive vice-president at Bank of Communications, says: "China is [likely] to face a slowdown to a certain degree," although he still estimates that "this year’s GDP will retain a growth rate of 10% or so, maintaining the momentum of the rapid development of recent years".
Qian’s comments come as stories emerge in the local press that the government is planning a stimulus package of Rmb370 billion ($54 billion) through a mixture of state spending and tax cuts amid fears, according to Michael Pettis, a former Bear Stearns trader and now an academic in Beijing,...
