Chinese bank most likely to collapse due to coronavirus

With the coronavirus outbreak, Chinese banking system goes through the rough times.

Good news from China are rare these days. Coronavirus has possibly claimed for its victim in Chinese banking sector.

Locals report today, that Yichun Roche Gold Bank, based in Jiangxi Province, went bankrupt while ordinary people braved the virus threat and appealed to the government. Video footage shows crowds gathered outside a seemingly institutional building.

With the coronavirus outbreak in China, country’s banking sector might experience even bigger risk as it already is in a rough shape.

The prolonged crisis is a threat to small and medium-sized companies that rely on bank credit to survive. As companies struggle with repayments, bad debt across the banking system could rise dramatically. Such a scenario would be considered dangerous as heavy amounts of bad debts, declining economic growth and trade a war with the US puts additional pressure on the stability of the Chinese banking system.


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Milko Trajcevski

Milko Trajcevski is a DailyCoin news reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs). Location: Skopje, Macedonia