Diamond News

HTTP/2 200 date: Fri, 07 Dec 2018 16:00:04 GMT content-type: text/html; charset=utf-8 set-cookie: __cfduid=df21796677593234aa78406138e4075701544198404; expires=Sat, 07-Dec-19 16:00:04 GMT; path=/; domain=.www.bloombergquint.com; HttpOnly; Secure cf-cache-status: HIT cache-control: public,max-age=15 access-control-allow-origin: * cf-ray: 485833fd5bcd3f83-YUL etag: W/"28cb2-F3ITbN1jM/myKnLUxQ3Rq5gkybE" expect-ct: max-age=604800, report-uri="https://report-uri.cloudflare.com/cdn-cgi/beacon/expect-ct" link: ; rel=preload; as=script; link: ?path=%2Fglobal-economics%2Fchina-needs-bailout-capital-plans-for-crisis-event-pboc-s-ma>; rel=preload; as=fetch; vary: Accept-Encoding x-powered-by: Express server: cloudflare China Needs Bailout, Capital Plans for Crisis Event: PBOC's Ma

image

(Bloomberg) -- People’s Bank of China adviser Ma Jun has probed the economy for triggers of financial turbulence, and proposed measures including direct bailouts of enterprises and bank re-capitalization should a crisis hit.

Property bubbles, local government contingent debt, the heavy reliance on land sales for financing or the shadow banking sector could set off a major crisis in China, according to Ma’s article[1] published on the Wechat account of PBOC-affiliated magazine China Finance.

He said actions should be taken in advance to prevent risks from materializing, including:

...

  • “Full attention” to smaller banks, such as joint-stock, city and rural lenders, as their role in generating systemic risks may “very likely exceed expectations”
  • Revision to the central bank law to enhance the PBOC’s ability to make decisions more independently and giving forward guidance
  • Allowing more types of financial institutions other than commercial banks to be able to participate in bond trading to improve the liquidity of the market
Invention ranging from direct

Read more from our friends at Gold & Silver

Pin It

Diamond Buyers Club

twitter facebook 

Follow us on Twitter and Facebook

Contact Us

+1 (832) 736-2772
 

PO Box 5613 
Katy, TX, USA