Chinese state media says US banking troubles are a result of poor regulation and domestic politics — but China’s banks aren’t having a great time either

China uses state media to push its messaging.

China’s state media says the banking crisis happened due to poor financial regulation and US domestic politics.
It cited former President Trump’s rollback of certain provisions of the Dodd-Frank Act as a contributor.
But banks in China also have their own issues amid the country’s property woes.

As the world’s coming to grips with the unfurling banking crisis, China’s state media says that Silicon Valley Bank, Silvergate Bank, and Signature Bank, New York imploded due to poor financial regulation and US domestic politics.

“While the managements of the banks should bear the most direct responsibility for mismanagement of the companies, the absence or mistakes of the United States on financial supervision and macro policies are what should be reflected upon,” Chinese state news agency Xinhua said Thursday.

The media outlet said bank collapses “fully exposed” the issues from domestic political disputes in the US that have led to changes in financial supervision. 

It also pointed to former US President Donald Trump’s rollback of some consumer protections in the Dodd-Frank Act in 2018 as a contributor to the current crisis. The Dodd-Frank Act was signed into law by then-President Barack Obama in July 2010.

China’s heavy-handed criticism comes at a bleak time for its own banks

But this harsh criticism comes at a bleak time for China’s own banks. 

They have had their own issues, such as property market woes — which prompted tens of thousands of people to refuse to pay their mortgages on stalled projects — and an economic slowdown after three years of on-off zero-COVID lockdowns.

The draconian lockdown measures impacted banks …read more

Source:: Businessinsider

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