Moody’s: China’s regional banks pose a range of spillover risks

Following a report published on the Chinese regulatory support for the country’s bank on Monday, the US-based Moody’s Investors Service notes that the Chinese regional banks pose a range of spillover risks, but systemic risks are limited.

Additional Points:

Speed of policy response is key to limiting resolution costs and contagion for Chinese regional banks.

Moody's says recent episodes of financial distress at Chinese regional banks point to rising vulnerabilities of these institutions.

• Moody's: Chinese Govt support for banks remains strong, but will become more selective