Moody's Investors Service has recently reported that China's authorities have the tools to prevent a financial crisis from materialising in the near future. However, even in the absence of a systemic crisis, major imbalances created by rapid debt accumulation are likely to erode credit quality over time. In addition, China's growing debt levels will lead to the persistence of large unrecognized banking sector losses, delays to the reduction in excess capacity and economic rebalancing, and a prolonged period of sub-optimal growth. What are the risks of a financial crisis in China and how should they be managed?
About the speaker
Dr Michael Taylor is a Managing Director for Moody’s Investors Service and Moody’s Chief Credit Officer for the Asia Pacific region. Michael joined Moody’s after a distinguished career in several leading central banks and international financial institutions, including roles at the Bank of England, the IMF and the Hong Kong Monetary Authority as Head of Banking Policy. He was also the Advisor to the Governor of the Central Bank of Bahrain.
Michael has also had a distinguished academic career, and has published widely on financial stability and financial regulation. Among his extensive publications are the seminal paper 'Twin Peaks: A regulatory structure for the new century'(1995) which inspired regulatory reforms in Australia, the Netherlands and most recently the UK.