China’s banking system hits records

Three largest banks in the world are also located in China.

This is the first time, when the Chinese banking system has become the world’s largest system.

The total value of Chinese banks’ assets at the end of 2016 exceeded $ 33 trillion, thus having overtaking the euro zone banks, the assets of which were estimated at $ 31 trillion.

Note that the banking system of the People’s Republic of China is more than three times higher than the country’s GDP.

Also note that the three largest banks in the world are also located in China.

According to experts, this is due to an increase in lending that spurred the government after the 2008 crisis to dampen its consequences.

At the same time, economists are confident that the increase in the banking system of the People’s Republic of China is not a reason for joy because of the high credit risks and inefficiencies of resource allocation.

Analysts also pointed out that the government often resorts to bank loans for infrastructure development, and this made the economy dependent on bank lending.

Last year, Beijing took the  title of world capital with the highest number of billionaires from New York.

China has the world’s largest currency reserves, which exceed the reserves of Japan, Switzerland, Saudi Arabia and Russia altogether.

However, since June 2016 China has continuously reduced its reserves. In May 2016 China’s gold reserves decreased to a five-year low.

Note that China expects another slowdown in economic growth in 2017 – to about 6.5 per cent against the target range of 6.5 percent to seven percent, and the actual 6.7 percent last year, said Prime Minister of the State Council of the People’s Republic of China Li Keqiang.

However, Beijing will continue reforms designed to reduce financial risks and increasing debts of enterprises, increase the openness of the economy to the outside world.