How Big of a Problem Are China's Non-Performing Loans?

The video discusses the challenges and solutions in financial engineering, focusing on bad banks and MPLS discrepancies. It examines the debt to equity program and the reluctance of the government to use public funds. The video highlights the tension between maintaining profitability and addressing structural issues in Chinese banks. It also explores the potential for a systemic crisis due to high credit reliance and the role of the sovereign balance sheet. Finally, it emphasizes the need for effective execution of reforms and strengthening the financial sector's fundamentals.

What are the long-term implications of the current credit problems on the sovereign balance sheet?

What reforms would you like to see from China in the coming years?