Moody's upgrades outlook for China's banking system to "stable": profitability stabilizes, liquidity remains ample

Gold Financial Reports, July 1, Moody's Ratings released the latest outlook on China's banking system—"China Banking System Outlook: Stable Operating Environment and Profitability Support Revision to Stable," pointing out that the outlook for China's banking system has been adjusted to stable. Sustained policy support and steady economic growth will maintain a stable operating environment for the banking sector. As the banking industry becomes more disciplined in reducing deposit costs, the contraction of net interest margins will be limited to a smaller range, and profitability will also stabilize. In a supportive monetary and fiscal policy environment, the banking sector's funding sources and liquidity will remain ample.
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