The next financial crisis could come from China, India

Indian Prime Minister Narendra Modi and Chinese President Xi JInping at a summit in Goa, India. Photo: Manish Swarup / AP

Asia's biggest economies are sinking into debt as India gives out an increasing number of bad loans and credit in China's banks accumulates similarly to how it did in the U.S. before the Great Recession, the Telegraph reports.

Why it matters: Global banks, some of which are still recovering, are more vulnerable to crisis than they were in 2006, before the U.S. housing bubble burst, per a World Economic Forum report. "There is still too much debt in parts of the private sector, and top global banks are still 'too big to fail,'" per the report.