Fitch’s disclosure lifts US dollar up in China

Baku. 24 November. REPORT.AZ/ Fitch International rating agency warns that profit margins of Chinese banks will decline in 2018 and tightening restrictions will have a negative impact on bank capital, which will ultimately reduce loan volumes.

Report informs citing the Bloomberg, Fitch also noted that the regulation and tightening process, which began in China's financial system, will mostly affect small banks.

According to agency, the reforms carried out by Chinese government in 2018 will make small banks dependent on big banks due to lack of capital.Meanwhile, Fitch said that "Shadow banking" with volume of $ 19 trillion will be tightly controlled by the Chinese government.

Following the announcement of Fitch, this morning, US-dollar in China up by 0.45% and reached 6,5750 CNY from 6,6050 CNY.