Ensuring adequate coverage for non-performing loans, especially for less significant banks, is equally important. 3/11  BIS - Central bankers' speeches  In addition to increasing loan losses, pressure on profitability could occur if the passthrough of higher official interest rates to the cost of funding, which is still gradual, accelerated more than expected.
BIS central bankers’ speeches  1  China will continue to provide Australia with significant economic opportunities over the longer term, including in sectors such as agriculture, education, tourism and a wide range of business services. Along the way though, we should be alert to the risk of adverse developments that could lead to a sharp economic slowdown in China.