17:38 - 2.04.2025

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April 2, Fineko/abc.az. One of the key performance indicators – net interest income — in China's six largest banks has fallen to a record low.

So, if for the Bank of China and the Industrial and Commercial Bank of China, the world's largest bank by assets, this figure was 1.48% at the end of 2024, then in 2021 it exceeded 2%.

ABC.AZ reports that these figures are reflected in the calculations of the Financial Times (FT).

It was noted that banks' profitability is falling as Chinese authorities face increasing pressure on banks to stimulate country's economic slowdown through cheaper borrowing.

Continuation of this trend indicates that the authorities are putting pressure on banks, forcing them to lower mortgage rates, raise deposit rates, and refinance loans for small and medium-sized businesses.

This affects the profitability of banking operations, and banks are forced to raise additional funds to finance their activities.