People walk past the headquarters of the People's Bank of China (PBOC), the central bank, as two paramilitary police officials patrol around it in Beijing Nov. 20, 2013. REUTERS/Jason Lee/File Photo
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China's banking sector could be facing an imminent debt crisis, a global central bank watchdog has warned, fuelling fresh fears of a blowout in the world's second largest economy which could hit the global financial system.China's credit-to-GDP gap reached 30.1 percent in the first quarter of 2016, its highest level ever and far above the 10 percent level thought to present a risk to a country's banking system, the Switzerland-based bank said in a quarterly report released late Sunday.The BIS gave China a red signal: a warning that it could face a financial crisis in the next three years.Because China is a key driver of world growth, a crisis in its banking sector could have catastrophic implications around the world, with the global economy still struggling to recover from the 2008 financial crisis.
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