KUALA LUMPUR: Recent measures by the Chinese government (A1 stable) for a number of troubled banks indicate that financial system stability remains the overriding priority, although support will become increasingly differentiated, Moody’s Investors Service said.
“We have in recent months seen rapid government response to episodes of bank stress, as regulators aim to alleviate market fear of contagion risk amid ongoing shadow banking and interbank activity,” according to Nicholas Zhu, a Moody’s vice-president and senior credit officer.