- Language: English
- 108 Pages
- Published: January 2012
- Region: China
Chinese Banks Need To Achieve High Returns To Support Growth Apr 05
- Published: April 2005
- Region: China
- Standard & Poors
Standard & Poor's Rating Services estimates that major commercial banks in China need to achieve a 2.1% return of operating income before provisions and business tax on average assets (ROABPT) to support a 15% annual asset growth rate and maintain a 5% ratio of equity to assets without additional capital injections, assuming the quality of the sector's portfolio of new lending is significantly better than the historical experience. A 20% earning payout is also factored into this estimation. This estimation is made on the basis that the country's major commercial banks are capitalized with a 5% ratio of shareholders' equity to assets. It is further assumed that banks have already made adequate loan loss provisions, i.e. they do not need...
Companies mentioned in this report are: China (People's Republic of )
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Research Type: Commentary
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China (People's Republic of )