主题：银行的好日子结束了 -- zhuhit

equivalent of credit risk management. For a comprehensive bank holding corporation, its risk management is much more complicated: it involves both credit risk management (which is much easier) and market risk management (its trading portfolio).

For the dynamic private sector in china, credit cutoff is a stupid decision: if private firms are truly risky, you can price your loan appropriately through higher rate.

Since early 2009, Big 4 banks gave out tons of loans to the state enterprises and local governments (many are collateralized by inflated land prices), those loans will come back to haunt many Chinese banks sooner or later. Mark my words.

My friend (U.S. Ph.d) got $1.5m venture capital investment from a local gov. back in Ningbo. I still do not understand how come those local bureaucrats suddenly became venture capitalists and how can they siphon public funds for this kind of highly risky investment.

It turns out that local gov. got ALL money from one Big-4 bank through an UNSECURED bank loan. The local gov. serves as the guarantor...

totally speechless.

国内银行的风险控制还是非常严格的。haha. Wait and see.