WASHINGTON， June 1 (Xinhua) -- China's banks are in pretty good shape and not vulnerable to a potential financial crisis despite a rapid rise of corporate debt in the country， a U.S. expert said Wednesday.
"While lending more to corporates unable to pay interest and principal on previous loans means financial risks are clearly rising， it is likely that China is years away from a potential banking crisis， providing it with a window to slow the growth of credit to a sustainable level，" said Nicholas Lardy， a senior fellow at the Peterson Institute for International Economics.
"A key reason for this judgment is that while the ratio of debt to gross domestic product (GDP) is quite elevated， China also enjoys a high rate of national savings. The level of debt a country can sustain depends significantly on the share of domestic savings in GDP，" Lardy， a leading expert on China's economy， wrote in an analysis published on the Financial Times website.
As China's debt build-up is almost entirely in domestic currency and China remains a large net creditor to the rest of the world， the world's second-largest economy is "not vulnerable to a financial crisis such as the one in Asia in 1997"， he said.
Lardy noted that banking crises almost always begin with problems on the liability side of bank balance sheets， but Chinese banks' liabilities are overwhelmingly deposits， making potential bank runs less likely.
"In any case， the central bank has substantial tools to deal with potential bank runs. For example， the required reserve ratio imposed on banks is currently 17 percent. This could be cut with hugely positive effects on bank liquidity，" he said.
Finally， Chinese banks have far less exposure to poorly performing state-owned enterprises (SOEs) than in the 1990s. Loans to SOEs now only accounted for 30 percent of all renminbi loans of Chinese banks and other financial institutions， down from 62 percent in the mid-1990s， according to the expert.
The International Monetary Fund (IMF) said in April in a report that given China's bank and policy buffers and continued strong growth in the economy， the costs of addressing potential losses on bank lending remain manageable despite the rising corporate debt risks.
To reduce the risks that are accumulating in the financial sector， Lardy urged Chinese authorities to "move aggressively to curtail the flow of credit to chronically unprofitable， mostly state-owned corporates" and close down these so-called "zombie companies，" which only survive with aid from the government and banks.
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Do you smell the breath of the Christmas Day? I am sure you do, because she is on her way to us. As we all know, giving gift is tradition which is handed down from generation to generation. What is your idea about the gifts of Christmas of 2010?
There are many people choosing a pair of shoes as the Christmas gift. Do you know the reason? If you do not know, then, I will tell you in details.
A pair of snow boots delivers a portion of warmth, carefulness as well as love to your loved ones. In the freezing winter, a pair of snug snow boots plays a vital role in the process of preventing the coldness. I am sure the one who receives your snow boots will be touched badly. Don’t you think so?
A pair of high-heel shoes can elevate your “height”. The “height” is not only making you be taller, but also improving your temperament and attitude. As we know, many office ladies love to wear a pair of high-heel shoes. They will be much more confident if they wear a pair of high-heel shoes. In the meantime, the high-heel shoes are suitable for many different occasions, whether formal or informal, such as business negotiation, business party, a Christmas party, birthday party and so on. All in all, a pair of high-heel shoes is a necessity in the life of a female. You can pick up a pair for your loved girl, respected mother or close female friends as the Christmas gift. Don’t you think it is a perfect idea?
A pair of flat-heel and comfortable shoes means a lifelong companion. The basic function of the shoes is to be used to walk, right? In this case, the comfort comes first. If you give a pair of flat-heel shoes for your loved one, you, actually, want to express that you want her or him to be your companion as long as you can live. In other words, you want her or him to walk with you in your later life. Quite romantic, right? Of course, you can also choose them for your close friend or alter ego, because you want her or him to be your lifelong friend.
Of course, you can also endow other meaning for the shoes, which just depends on you. However, a pair of shoes is really a perfect idea as the Christmas gift, right?
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The stage when the number of reported accidents in infants is high is during the infancy period. Parents ignore their infants capability and are not keen with the items in the environment a kid is in or playing in. It is the duty of you as a parent to make sure your infant is in safe environment. You need to make sure all tools and toys used by your child are safe and clean. Going through the aspiration precautions handout will equip you with the knowledge of creating a conducive surrounding for your little one.
Ingestion of any foreign object into the lungs can trigger respiratory problems. As a parent, you need to create a conducive environment and make sure your little one is playing with big toys that they cannot choke or swallow. The toys need to be kept clean to make sure the dust from the toys does not choke them.
A lot of care needs to be taken when buying your infants clothes. A plain shirt or dress is highly recommended. The clothes with decorative.
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