Top Banks Tighten Exposure To Smaller Peers To Curb Credit Risk (RTRS Sources)

MNI (London) - Nothing in the way of meaningful market reaction in HK equities and Chinese FX markets as RTRS sources suggest that "some of China's top banks have sharpened scrutiny of smaller peers' asset quality and have tightened standards for interbank lending, in an effort to curb credit risk as a deepening property debt crisis ripples through the economy."

• The piece went on to note that "two state-owned banks have decided to reduce interbank lending limits and set shorter maturity periods for smaller peers deemed high risk."
• A reminder that broader Chinese credit quality has been garnering wider attention in recent months given the well-documented economic headwinds that the country is facing.