Currency crisis at Chinese banks ‘could trigger global meltdown’

yuan2_1662327b
The growing problems in the Chinese banking system could spill over into a wider financial crisis, one of the most respected analysts of China’s lenders has warned. Charlene Chu, a former senior analyst at Fitch in Beijing and now the head of Asian research at Autonomous Research, said the rapid expansion of foreign-currency borrowing meant a crisis in China’s financial system was becoming a bigger risk for international banks. “One of the reasons why the situation in China has been so stable up to this point is that, unlike many emerging markets, there is very, very little reliance on foreign funding. As that changes, it obviously increases their vulnerability to swings in foreign investor appetite,” said Ms Chu in an interview with The Telegraph. Ms Chu has been warning since 2009 about the growth of a shadow banking system in China that has helped fuel the credit expansion seen in the country in the wake of the Western financial crisis. However, fears are growing that the build-up of foreign borrowing by the Chinese, particularly in US dollars, is creating an even greater build-up of risk than that seen before the crisis of 2008. More
image002
Advertisements

About END TIME HEADLINES

End Time Headlines is a ministry created to provide resources to equip believers and to inform the discerning of the "Signs and Seasons" in which we are in. Our Mission is to inform our readers and viewers of Prophetic Events and how they are unfolding before our very eyes thru News and Headlines presented from a "Prophetic Prospective" in light of the Holy Bible. We strive to operate in excellence and in Integrity to provide accurate and reliable sources to inform our readers.
This entry was posted in ECONOMIC ALERT and tagged , , , . Bookmark the permalink.