Non-banks present huge stability risks, Beijing’s tech investment-led growth path
Tuesdayy 7 July 2020 – Vol.11 Ed.28.2
Commentary: Non-banks present huge stability risks
By Mark Sobel in Washington
Asked about lofty equity prices at his June Federal Open Market Committee press conference, Fed Chair Jerome Powell responded that the central bank is focused on its dual mandate. But fulfilling its financial stability responsibilities requires bearing down on non-banks and leverage. The dangers of inadequate oversight of non-banks and excess leverage were key lessons from 2008. Those dangers remain even more acute today. Acting on them has taken on greater urgency in the light of the coronavirus crisis.
Read the full commentary on the website.
Meeting: Beijing’s tech investment-led growth path
Thursday 9 July, 20:00-21:00 SGT
In response to the 2008 financial crisis, the Chinese government spent billions of dollars to boost the domestic economy and maintain high growth rates. The 2020 stimulus targets areas that will help China transition to a high-tech and service-driven economy, such as data centres, 5G infrastructure and charging stations for new energy vehicles. OMFIF convenes a panel to discuss the Made in China 2025 program, the impact of national security considerations on the allocation of capital and more.
Request to attend the meeting.