PBoC Researcher Goes Mellon

SCMP: Many financial institutions should go bust, China central bank researcher says
“Not a single Chinese financial institution has gone bankrupt ... are China’s financial institutions really so good that not even a single one has gone bust?” Xu asked in a speech at Peking University. “The real problem is that some authorities and local governments don’t want to open the jar.”

...“When we tried to tackle a few risky places, everyone involved was scared” and began to ask questions such as “is my economy not good” or “is my regulation too lax”, Xu said. “Since small risks are not allowed to be addressed, moral hazard is created.”

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