World banks must act against toxic assets: China
The US government and global financial authorities need to remove toxic assets from their banking systems to restore world economic stability, a top Chinese banking regulator said Friday.
Actions taken by governments worldwide to stabilise the financial sector "have gradually eased the panic," Liu Mingkang, chairman of the China Banking Regulatory Commission, told a forum.
"But from the flip side of the coin... I should say it's not enough and all these are not... working," given the massive losses incurred by toxic assets still lingering in banking systems around the world, he said.
"Toxic assets must be immediately resolved worldwide," he said, adding "the foundation of stability still lies in the US."
Separately, Liu said China's economy was expected to grow seven to eight percent this year despite the impact of the crisis.
"China too is dealing with the sharp downturn in business prospects driven by the global macro-economic slowdown," he said.
Comments