China’s bad loans could trigger financial crisis in 20 years

Beijing: China could suffer a severe financial crisis in 20 years unless measures are taken to reduce the country’s non-performing assets amounting to $181 billion in 2004, experts have warned. The huge amount of non-performing loans of China’s major commercial banks increases the danger of panic bank withdrawals, Xinhuanet quoted economist Wu Jinglian as saying. Wu cautioned against financial risks accumulated in the country’s sluggish stock markets. — AFP