Biz talk

Banks tread slowly

Chinese banks have become more cautious on overseas expansion due to the economic crisis, ratings agency Moody's Investors Service said in a recent report.

The capitalization levels of Chinese banks are marginal and will be under pressure if they expand abroad aggressively, the report said. The potential for a protracted domestic economic slowdown, deterioration in their loan portfolios, and subsequent drops in profits will all increase their operating uncertainties.