The IMF warns China over banks
The fear is that banks are not capable of supporting multiple crises: loans, housing bubble and currency values. For the Chinese Central Bank, the IMF report "is not sufficiently objective." This year, Chinese financial shares were down 23%.
Beijing (AsiaNews / Agencies) - The International Monetary Fund (IMF) has warned China about the possible "fragility" of its financial system. In a report published today, it states that China's banks are strong enough to support isolated crises, but incapable of overcoming a crisis derived from overexposure to credit, housing bubbles, and the currency values.
The 126-page report is based on stress tests carried out on 17 Chinese banks, which cover 83% of the commercial banking system in the country. Prepared in June, it was released today with 29 recommendations to the Chinese authorities, fearing that reduced growth, and a housing bubble will lead to a credit crisis, similar to that afflicting the United States and which has caused the present global crisis.
The MSCI index of financial shares in China fell by 23% this year. Nevertheless, the Chinese Central Bank, says that "the report contains several points of view that are not sufficiently objective and complete."
The 126-page report is based on stress tests carried out on 17 Chinese banks, which cover 83% of the commercial banking system in the country. Prepared in June, it was released today with 29 recommendations to the Chinese authorities, fearing that reduced growth, and a housing bubble will lead to a credit crisis, similar to that afflicting the United States and which has caused the present global crisis.
The MSCI index of financial shares in China fell by 23% this year. Nevertheless, the Chinese Central Bank, says that "the report contains several points of view that are not sufficiently objective and complete."
See also
Credit crisis “Made in China”
27/08/2008
27/08/2008
Chinese government powerless vis-à-vis failing shadow banks
12/09/2018 14:14
12/09/2018 14:14