China's banking system has gone through major changes in the past 70 years. After restructuring following the 2008 financial crisis, Chinese banks have grown significantly, but questions remain about the quality of their assets. They have used complex financial products to hide bad loans, leading to concerns about the true health of the banking system. Despite reported low levels of bad loans, skepticism remains about the accuracy of these reports. The main borrowers of Chinese banks are local governments with financial struggles, raising doubts about the banks' reported earnings and balance sheets.