Sticky tape and chewing gum may be what's needed to hold Chinese banks together as they learn to operate in an environment of slower economic growth and generally tighter liquidity conditions, says one banking analyst.
Although inter-bank funding costs for China's lenders have fallen back this week after last month's unprecedented credit squeeze, concerns about future money supply continue to pressure banking stocks in Shanghai and Hong Kong.
(Read More: Is China Right to Brush Aside a Credit Squeeze)
"I just hope there's enough chewing gum and sticky tape to hold things together in the Chinese banking sector in the next couple of years," Mizuho Securities Asia's Banks Analyst Jim Antos told CNBC.
"The liquidity crisis that we've just had shows how difficult it is for the regulator in China to be managing for a lower growth scenario. They don't have experience for this and it was a blunder to have repo rates go up to 20 percent," he said.
Antos was referring to a spike in short-term borrowing rates in China's money markets on June 20 that the central bank tolerated in what was widely seen as a message to local lenders to rein in risky lending practices.
(Read More: O'Neill vs. Faber: Is China Liquidity Crunched?)
The key seven-day repo rate, viewed as a good indicator of market liquidity, was at about 4.25 percent on Wednesday, its lowest level since late May and down from a record high hit above 10 percent last month.