Bank Report Warns of Bad Loans in 2012

China International Capital Corp warned in a recent report that banks are likely to see an increasing number of loans go bad during the first half of 2012, due in part to the scarcity of credit available to small and medium enterprises.

Based on a survey conducted by CICC in the cities of Hangzhou and Shaoxing in Zhejiang Province, home to many SMEs, the report said that even though banks have loosened credit controls on SMEs, many SMEs may still suffer a credit crunch in the first quarter of next year.