By Simon Hradecky, created Wednesday, Feb 18, 2020 06:54:59The Chinese banking industry has been hit by the country’s financial crisis, and its commercial banks have struggled to keep up with the demand.
A new report from China Banking Regulatory Commission, which is headed by the finance minister, says the country is losing around 1.2 trillion yuan ($17.8 billion) in capital to the market over the past two years.
But the country still has the world’s largest banking sector, and a few major banks are now investing heavily in the sector.
In a report last month, the banking regulator said there were a total of around 2,000 commercial banks in the country, and that most of them were under pressure from China’s massive capital outflows.
But it said they were still a relatively small part of the banking system.
In the past decade, the country has become a major financial center for Beijing, and the banking sector is a key part of its overall economic development strategy.
However, the regulator warned that China’s economy was slowing and the country could see its financial sector shrink by as much as 2% this year.
The report also found that the average size of commercial banks has grown by over 100% since the end of the financial crisis.