Banks Face Large Losses and Potential Job Cuts Due to China's Property Sector Bailouts

China’s banking sector is under severe stress, tasked with propping up its faltering $57 trillion property industry. Banks like ICBC face the prospect of issuing risky, unsecured loans to financially unstable developers. This move could dramatically spike their bad debt provisions, with an estimated additional $89 billion needed in 2024, severely impacting their profits. The situation is dire, forcing banks to contemplate drastic measures like reducing growth targets and cutting jobs, while juggling government demands and business sustainability. This predicament poses a significant threat to the overall stability and profitability of China’s major banks.