The bankruptcy of the major investment lender Silicon Valley Bank and the unstable situation in the banking sector in the US and Europe due to the financial troubles of Swiss Credit Suisse could give additional impetus to the development of the Chinese economy. The local banking sector is largely protected from such problems due to the strong role of regulators. informs Bloomberg agency with reference to market participants.
“Financial instability increases credit risk aversion worldwide and increases the likelihood of recessions in many economies, with the notable exception in China. This is due to large-scale control changes in Chinese financial regulation. The local Communist Party announced this week the creation of two new financial institutions that will take precedence over the state, economists at Nomura Holdings led by Rob Subbaraman.
All this testifies to a broader strengthening of the role of the Communist Party of China in regulating the local financial market, including the banking sector. The article states that strengthening control, as conceived by the PRC authorities, will help to avoid the problems faced by credit institutions in Western countries in the future.
“The attractiveness of China as a partner and model for emerging markets from Indonesia to Brazil will increase. “China is highly likely to become a major growth pillar for emerging markets this year,” Nomura Holdings analysts said.
March 17 Bloomberg agency based on analysis of securities quotas from 166 credit institutions worldwide. reportedHe said that after the bankruptcy of Silicon Valley Bank and Credit Suisse, the best foreign exchange results in the world stock market were shown in the shares of Chinese credit institutions. We’re talking about the Bank of China, the Industrial and Commercial Bank of China, the Construction Bank of China, and other major banks in China.
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.