China’s Banks Will Be Cautious on Small Business Loans, Says Creditsights’s Marshall

The video discusses the pressure on China's banks to increase lending to small and medium-sized enterprises (SMEs) despite the risks involved. It highlights the reluctance of banks to lend to SMEs due to credit quality concerns and the government's push for low-interest rates. The video also covers the potential benefits of liberalizing interest rates and examines the issue of non-performing loans, noting an increase in such loans due to economic slowdown. The banks' strategies to manage these loans while maintaining profitability are also discussed.

Discuss the relationship between interest rate liberalization and the lending practices of banks in China.

What trends have been observed in the incidence of non-performing loans in China's banking sector?