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China's Banking System Won't Collapse, Former Bank Director Says

  • Mandarin-speaking Stent spent years working in Chinese banks
  • Acknowledges risks but says overall system remains robust
The Oriental Pearl Radio & TV Tower, right, and commercial buildings are illuminated as they stand at dusk in Shanghai, China
Photographer: Tomohiro Ohsumi/Bloomberg
Updated on

Foreigners predicting doom for China’s banks have got it all wrong, according to James Stent, who spent more than a decade serving on the boards of two Chinese lenders.

Instead of falling into a debt-fueled crisis, China’s banks are able to stave off trouble because of the willingness of the government to throw money at problems in order to ensure financial stability, Stent argues.