The banking system of China has become the world's largest by assets in 2016, surpassing the eurozone, according to Financial Times calculations. This result has been achieved largely due to a sharp increase in bank lending since 2008 (the beginning of the state program to combat the global crisis), which has been ahead of GDP growth.
At the end of 2016 the volume of Chinese banks assets reached $33 trillion, compared with $31 trillion for the eurozone, $16 trillion for the U.S. and $7 trillion for Japan. The value of China's banking system is more than 3.1 times the size of the country’s GDP, compared with 2.8 times for the eurozone.
The growth of China's banking system is hardly a cause for optimism: more than likely it is a reminder of the excessive economic dependence on bank loans in terms of non-optimal allocation of resources, resulting in enormous credit risks, experts say.