And the capital reserve ratio on this underground banking system? Zero.
Depositors take to loan-sharking
In the first 15 days of September, combined deposits at the big four plunged by 420 billion yuan (HK$512.7 billion) from the end of August.$513 billion Hong Kong Dollars is $66 billion US dollars.
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The sharp decline in deposits slowed down banks' lending. New loans given by the big four amounted to only 87 billion yuan in the first half of September, versus 186.7 billion yuan for August.