China is Shutting Hundreds of Banks. Should Bitcoin Investors Be Worried?
Key Summary
China has closed 670 banks, mostly small rural lenders, in its weakest financial system, with 3,139 remaining after a 23% decline in four years. The country's economic growth slowed to 4.3% in the second quarter, and new yuan loans fell outright in April and July. Fitch Ratings attributes the closures to bad loans, with 2.8% of money borrowed by small banks going unpaid. The wider economy is cooling, but Fitch believes contagion is unlikely due to the local nature of these banks' lending and borrowing. Bitcoin (BTC) rose 10% after past bank shocks, but its price is now near $85,340, largely unaffected by this latest move.
China is shutting banks at a record pace as bad loans rise. See what Fitch says about contagion and how Bitcoin could feel it.