China is one of the economies most at risk of a banking crisis, according to the Bank of International Settlements, which published its quarterly review on Sunday.
The report, which included a study on the early signs of a banking crisis, found China’s debt — measured by a credit-to-GDP gap — surpassing an amount that could lead to a system fallout. The country also has a high level of debt servicing ratio, which made its banking system more vulnerable.
