Post Profile






Why a banking crisis in China seems unavoidable

China’s debt – in particular its corporate debt – is large by historical and international standards. This column argues that of greater concern is the sharp increase in recent years, and that the vulnerability is heightened by the concentration of this debt in old industries that suffer from overcapacity and weak competitiveness. The authorities appear to be only now taking steps to halt the rise in corporate debt, but as prior episodes of banking crises show, this is unlikely to be enough to avert either a prolonged period of slowing growth or a financial crisis in the medium term.
read more

share

Related Posts


Identifying the risks from corporate currency mismatches in emerging economies

Business & Finance / Economics : Vox

The increase in the debt of emerging market non-financial firms has been large. This column argues that to understand the risks, if any, it is important to know the state of corporate balance sheets and what firms have actually been...

How to resolve a systemic sovereign debt crisis

Business & Finance / Economics : Vox

How should the international community deal with the solvency crisis of a systemic country? This column argues that the presence of spillovers calls for reducing bail-ins, while requiring somewhat greater fiscal adjustment by the cr...

If China's banks are going to implode, here are some figures on how big the implosion might be

Business & Finance : Business Insider: Clusterstock

Some people think that China is heading toward a financial crisis as its GDP growth slows but its debt increases. Barclays analysts Ajay Rajadhyaksha and Jian Chang recently published a paper on the increasing size of China's financ...

In JPMorgan Chase Trading Bet, Its Confidence Yields to Loss

Business & Finance : DealBook

While the $2 billion trading loss is not a huge threat to a bank as large and powerful as JPMorgan, it is a stark reminder that the banking system remains vulnerable to market shocks and has heightened concerns that big banks contin...

Contagion Risk Increases – Euro Falls As Moody’s May Cut Rating On 3 Large French Banks Exposed To Greece

Business & Finance : Zero Hedge

From Gold Core Contagion Risk Increases – Euro Falls As Moody’s May Cut Rating On 3 Large French Banks Exposed To Greece The euro has fallen on international markets as the European sovereign debt crisis is deepening and appears to ...

Comments


Copyright © 2016 Regator, LLC