In the early 2000s, when China faced a banking crisis, central and local governments shouldered the cost. This time might be different. The economy is slowing and the official banks, as well as the shadow banking system,  have dramatically developed and accumulated a significant amount of non-performing assets. The key might well be how much the rest of the economy (the institutional investors, the households and, possibly, the foreign investors) can absorb the losses for the system to be cleaned up. Another important issue is whether Chinese banks’ expansion abroad will go on. Such expansion could have major global consequences in terms of competitive forces and financial stability.

The presentation will be held in English and the Questions/Answers session in French and English.