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The banking sector's bad loan ratio.....>

CHINA PRESS
CHINA PRESS: The banking sector's bad loan ratio is likely to rise as the
economy slows  and overcapacity cuts accelerate in the second half of this year,
the Shanghai Securities News reported Thursday, citing a research note from the
Industrial and Commercial Bank's Financial Research Institution. Banks will
continue suffering operational pressures as their access to credit shrinks and
their traditional loan demand declines, the report said. The volatility of
capital availability will rise, which could cause liquidity shocks for certain
medium- and small-size banks. Rising fund-raising costs in both the credit and
bond markets could hurt the real economy, the report warned. The ICBC research
group predicts full-year GDP growth will be around 6.8% on average, the report
added. (Shanghai Securities News)

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