The latest stress test on Chinese banks shows that capital pressure on large and medium-sized banks is easing as the economy recovers from the pandemic, Fitch Ratings says. This supports our view earlier this year that the operating environment had improved, and our related decision to upgrade the Viability Ratings of China’s six state banks as well as some of the large joint stock commercial banks. However, small banks remain vulnerable due to their higher risk exposure and weaker capital buffers. The stress-test results, released with the People Bank of China’s (PBoC) 2021 Financial Stability Report on 3 September, ... (full story)