Written by David Lowder
BEIJING (Reuters) – The United States and China are deepening cooperation on financial stability issues and two more simulations of financial shocks are planned after a recent exercise on resolution of large banks, U.S. Treasury officials said. He said that
The exercise was developed by the U.S.-China Financial Task Force, which was formed during Treasury Secretary Janet Yellen's first visit to China last year to rebuild economic ties. The group, led by representatives from the U.S. Treasury and the People's Bank of China, last met in Beijing in January.
Ms. Yellen is scheduled to discuss these efforts and other financial stability issues with PBOC President Ban Gongsheng on Monday at the central bank's Beijing headquarters.
Finance Ministry officials said on condition of anonymity that the new exercise would take place in April or May.
One covers operational resilience adjustment risks caused by major external shocks such as natural disasters, cyber-attacks on banks, and new pandemics, and the other covers the impact on the insurance system of climate change risks. Masu.
There was no immediate comment from the People's Bank of China.
U.S. officials said the exercise will help establish lines of communication between U.S. and Chinese regulators and identify areas of potential cross-border transmission and other risks.
The official did not provide specific results, but said Chinese and U.S. officials had made suggestions on how to better coordinate in times of stress.
No name listed
“It's general in the sense that there was no cause for concern about a particular bank. No bank names were used,” the official said.
Last November, when a ransomware attack on the U.S. unit of Industrial and Commercial Bank of China (ICBC) disrupted systems and temporarily destabilized about $9 billion worth of trading in the U.S. Treasury market, cross-border external The risk of shocks has been highlighted. .
The Treasury has been conducting such simulations for many years with countries with large financial systems, such as Japan, the United Kingdom, and European countries. The official said the United States and China have not held any such exercises or discussions so far.
Although the direct financial ties between the U.S. and China are not large enough for a slowdown in China to affect U.S. growth, the official said it is important to start anticipating the risks.
“Countries with large financial systems need to do this with each other, and we simply haven't done that with China. So we're starting in that direction now,” the official said. Ta.
U.S. Treasury Secretary Janet Yellen in Guangzhou on Friday cited the large bank failure exercise as a concrete example of improving economic dialogue between the United States and China.
(Reporter Miral Fahmy)
