China’s leading central bankers have sounded the alarm about the collapses

By RockedBuzz 1 Min Read

The financial authorities must strengthen the supervision of the data accuracy of financial institutions in order to prevent risks, says the Reuters in the article cited by, according to which, if possible, lessons should be learned from the Silicon Valley Bank crisis.

China should also allow the deposit insurance system to play its full role, allowing the mechanism to quickly and orderly deal with troubled banks, effectively preventing systemic risks, said the authors, who are from the PBOC’s Office of Financial Stability and the Deposit Insurance Corporation. they arrived.

But the authors also write in their article that China’s commercial banks are generally healthy and stable.

However, they see that China needs to consolidate capital reserves for managing financial risks so that sufficient funds are available to eliminate risks in a timely manner.

Cover image: Getty Images.

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