Inside the PBOC's Efforts to Tame China's Growth

The transcript discusses concerns about a potential liquidity crisis in China, focusing on the preventive measures taken by the PBOC and Chinese officials. It highlights the risks faced by smaller, mid-tier banks that rely heavily on non-deposit funding and have engaged in aggressive growth through shadow financing. The discussion also covers regional banks, particularly in the Rust Belt, which face higher risks due to their narrow geographical focus and significant shadow loans.

What preventive measures are being taken by the PBOC and Chinese officials to address liquidity issues?

Why are smaller mid-tier banks considered to be at risk for a liquidity crisis?

In what ways do shadow loans impact the financial profile of regional banks?

How does the performance of regional banks relate to the local economy?

What evidence suggests a higher concentration of risk at certain banks?