Chinese banks are still "acutely vulnerable" to economic slowdowns, according to Fitch Ratings. The company said overhauls have improved the sector and the country's massive foreign currency reserves could help mitigate any fall, but the banking system still has about US$476 billion in non-performing and problem loans despite bailouts of the biggest banks. These loans may cost the banks and government US$220 billion, one third more than the system's total capital stock, the Wall Street Journal reported. Fitch said it is difficult to accurately measure an exact total because historical data is weak and there are accounting deficiencies that muddy the picture.
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