From the Wall Street Journal, a report on analysis by the Volatility Laboratory at New York University’s Stern School of Business:
- The cost of propping up China’s banks in the event of a financial crisis has nearly quadrupled in the past three years to $526.2 billion, the largest of any banking system
- The analysis uses banks’ balance sheets and stock prices to mimic the kind of stress tests central banks use to determine whether banks have enough capital to withstand financial storms on the same scale as the global financial crisis in 2008
- “China’s banks, if the V-Lab’s calculations are any indication, do not”
More at the link, it is ungated.
–
I posted a happier story on China, here: Overnight press: “Chinese Stocks Take Off” (that was just after i had my morning coffee
)
