China is "one of the bigger risks" to global economy - BoE's Carney
(Adds detail from interview)
By David Milliken
LONDON, Sept 12 (Reuters) - 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.
(Reporting by David Milliken; Editing by Kim Coghill and
First Published: 2018-09-12 07:29:30
Updated 2018-09-12 07:47:55
© 2018 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.