Chinese Banks Told to Halt Lending to US Banks
Its too risky, apparently.
Chinese regulators have told
domestic banks to stop interbank lending to U.S. financial
institutions to prevent possible losses during the financial
crisis, the South China Morning Post reported on Thursday.
The Hong Kong newspaper cited unidentified industry sources as saying the instruction from the China Banking Regulatory Commission (CBRC) applied to interbank lending of all currencies to U.S. banks but not to banks from other countries.
"The decree appears to be Beijing's first attempt to erect defences against the deepening U.S. financial meltdown after the mainland's major lenders reported billions of U.S. dollars in exposure to the credit crisis," the SCMP said.
Via Greg Mankiw.
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