Categories: Market Overview

China is 'one of the bigger risks' to global economy: BoE's Carney

China’s financial system poses one of the bigger risks to global financial stability, Bank of England Governor Mark Carney said in an interview with the BBC to mark the 10th anniversary of the global financial crisis. Carney also cited domestic risks to Britain from Brexit, a further significant rise in household debt and cyber-attacks on the banking system, risks the BoE has previously highlighted in regular reports on Britain’s financial stability.

In its last report in June, the BoE hit back at European Union concerns that banks operating in Britain were poorly prepared for the risk that the country leaves the EU in March next year without any kind of transition deal. “One of the bigger risks for the global economy are developments in China,” Carney said in an extract of the interview released on Wednesday on the BBC’s website.

“China is a great source of growth in the global economy, an economic miracle — lots of positives. At the same time their financial sector has developed very rapidly, and it has many of the same assumptions that were made in the run-up to the last financial crisis,” he added. A new financial crisis on the scale of that which started in the United States a decade ago could not be ruled out if bankers and regulators grew complacent, Carney warned. “Could something like this happen again?” he said. “Could there be a trigger for a crisis — if we’re complacent, of course it could.” However, British banks were now required to hold significantly more capital to protect themselves and the public against downturns than was the case 10 years ago, he added.

China is ‘one of the bigger risks’ to global economy: BoE’s Carney, Reuters, Sep 12
The FxPro News Team

This team of professional journalists announces the most interesting and influential articles from the major financial media as a brief summary. All such news may have sufficient potential to affect the course of trading assets.

Share
Published by
The FxPro News Team
Tags: aud

Recent Posts

FTSE 100 Wave Analysis – 17 March 2025

FTSE 100: ⬆️ Buy - FTSE 100 reversed from key support level 8425.00 - Likely…

13 hours ago

Alibaba Wave Analysis – 17 March 2025

Alibaba: ⬆️ Buy - Alibaba broke the key resistance level 145.00 - Likely to rise…

13 hours ago

EURNZD Wave Analysis – 17 March 2025

EURNZD: ⬇️ Sell - EURNZD reversed from long-term resistance level 1.9160 - Likely to fall…

17 hours ago

AUDUSD Wave Analysis – 17 March 2025

AUDUSD: ⬆️ Buy - AUDUSD broke resistance level 0.6350 - Likely to rise to resistance…

17 hours ago

Weak US retail sales might boost stocks

Weak US retail sales are adding to concerns of a potential recession, putting pressure on…

19 hours ago

Dow Jones: Rebound or Rally? The Fed Holds the Key

The Dow Jones rebound depends on the Federal Reserve's monetary policy and incoming data. It…

20 hours ago

This website uses cookies