Fitch: China Banks' Net Interest Margins Declining

The video discusses the challenges banks face in supporting economic growth, including margin pressures and weak mortgage demand. It highlights the impact of regulatory tightening on banks' credit profiles and the potential need for recapitalization. The systemic risks posed by smaller lenders are examined, along with the effects of potential mortgage rate cuts on large banks. Despite these challenges, banks are finding growth in green sectors and inclusive finance.

Discuss the potential systemic risks posed by smaller regional lenders in the banking sector.

What factors could mitigate the margin pressure faced by banks in the upcoming year?