Credit agency Fitch Ratings says China has a potential banking crisis in the making.
The agency says lenders in China are engaging in excessive risk-taking, which could lead to major losses on corporate loans.
Banks lent 5.2 trillion yuan in the first four months of the year, encouraged by government backing for infrastructure projects.
Fitch Ratings senior director Charlene Chu says there's so much credit on offer that they are lending more to try and maintain their earnings.
She Chu says the Chinese government has not said it will cover losses banks may be incurring on stimulus-related lending.
Last year, the Chinese government announced a stimulus package worth 4 trillion yuan, designed to boost economic activity during the downturn.
