Reports that China banks are making loan loss provisions in preparation of Evergrande

Banks are setting up for restructuring and low losses from Evergrande

Their reports that China's Evergrande lenders are making moves for loan loss provisions, exposure cuts and also preparing for a restructuring of the debt from the China developer.

This is a according to sources. The Agricultural Bank of China, Minsheng banking core and Minsheng and Citic are each making almost provisions and looking to restructure debt to avoid total default.

Reports are that Evergrande will not be able to make a debt payment next week with implications through the banking system. The PBOC injected reserves into the system today to alleviate some of the stress. Nevertheless the situation remains in crisis mode.