I'm posting this for interest and background on China risks
30 Chief Risk Officers and heads of risk management from more than two dozen of China's biggest banks "some serious risk issues brewing in China's banking industry"
Four of the problems they identified as posing the greatest near-term risk
- Risk 1: Economic downturn leads to emergence of credit risk
- Risk 2: Risk management cannot keep up with constantly changing business models
- Risk 3: Asset-liability mismatch ... Most Chinese banks lack a basic understanding of asset and liability management (ALM). They usually have long-term assets and short-term liabilities
- Risk 4: Significant risk from off-balance-sheet activities
