What accounts for the problems facing China's four largest banks?

Question

Quizplus · Accepted Answer

The problems facing China's four largest banks are largely due to their large loans to inefficient, state-owned enterprises. These loans are often made based on political considerations rather than sound financial analysis, leading to a high rate of non-performing loans and a lack of profitability. Closing unprofitable branches and laying off unproductive employees may be part of a broader effort to improve efficiency, but is unlikely to be sufficient to fully address the banks' underlying issues. Selling shares in the bank overseas may be a way to raise capital, but it is not necessarily related to the banks' specific problems.

What Accounts for the Problems Facing China's Four Largest Banks