China’s top lenders tout limited exposure to western banking crisis, Pedfire, Apr. 2, 2023.

China’s biggest banks say they have escaped unscathed from the financial crisis in the US and Europe, following the collapse of Silicon Valley Bank and Credit Suisse. China’s top lenders—Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China and Bank of China—have all reported there was no direct damage to their books from last month’s emergency rescue of Credit Suisse by UBS and failures in the US banking sector. “Even from an indirect or spillover effect perspective, the impact [to China’s banking sector] is very limited,” said Ji Zhihong, vice-president of the country’s second-largest bank CCB at a briefing last week, when all the main banks reported strong earnings. China’s banks and other financial institutions are still reporting to regulators the results of stress-testing against what they see as a potential minefield of new risks that includes exposure to European and regional US banks. According to staff carrying out the tests, only limited exposure has been found. The biggest lesson for China’s financial system planners and regulators is not to “create the environment” that puts banks into a similar position as SVB and Credit Suisse, said Chen Long, co-founder of Beijing-based research company Plenum.
(To be continued)

https://pedfire.com/chinas-top-lenders-tout-limited-exposure-to-western-banking-crisis/