Rate cuts: China’s state banks face margin squeeze as they comply with the call to slash mortgages to aid an ailing property market
China’s state banks are confronting a margin squeeze as they adhere to a demand for reducing mortgages to support a struggling property market. Although rate cuts are aimed at stimulating economic growth, this move poses a challenge to banks that rely on interest income. As they comply with the call to slash rates, they must find ways to maintain profitability amidst growing concerns over a potential financial impact.