China Press: CBRC Chief warns 'black swan' event could threaten financial stability

In an interview with China’s People’s Daily newspaper, Guo Shuqing, the head of the China Banking Regulatory Commission (CBRC) warned that a “black swan”, or an unforeseen, event could threaten the country’s financial stability, Reuters reports.

Key Quotes:

The dangers stem from the pressure of rising bad debt, imperfect internal risk systems at financial institutions, the relatively high levels of shadow banking activities and rule violations.

All of these risks could upend financial stability through a “black swan” event.

“We need to focus on reducing the debt ratio of companies, restrict household leverage, strictly control cross-financial sector products, continue to dismantle shadow banking,”