RBA’s Kent considers risks around Chinese debt
Assistant governor says nature of debt means government has some “leeway” around liquidity
The high level and rapid growth of debt in China increases its vulnerability to shocks, an assistant governor at the Reserve Bank of Australia (RBA), Christopher Kent, warned today (June 16).
The rise in debt since 2008 has been concentrated in the corporate sector and local governments' off-balance sheet vehicles, he told an audience in Brisbane.
"There is a risk that defaults on these debts could impose significant losses on financial institutions, and could lead to a general loss of
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