IMF assess China’s financial system stability

The International Monetary Fund has conducted a detailed analysis of the stability of the Chinese financial system.

The stability of the financial system of the world’s second biggest economy has come under the spotlight as concerns about price bubbles in real estate markets, spiralling local government debt, and the sharp increase in off-balance sheet lending has become apparent.

While the IMF was stymied by a lack of information in some areas of China’s fast growing financial sector, it was able to discern what it thinks are moderate to severe potential risks to the country’s banking sector.

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