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.
- The world's largest 30 banks hold $43 trillion in assets, compared to the $30 trillion they controlled in 2006.
- Chinese and Indian banks haven't tightened their lending practices as the European and American banks that were at the epicenter of the last global financial crisis have.
- President Trump's intention to kill certain Dodd-Frank regulations to stimulate growth could make the banking system more risky, per the WEF.