Economic Situation: China

(asked on 9th November 2021) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential risks posed to UK financial stability as a result of developments in China’s economy in recent months; and if he will place a copy of that assessment in the Library.


Answered by
John Glen Portrait
John Glen
Paymaster General and Minister for the Cabinet Office
This question was answered on 16th November 2021

The Treasury, alongside the UK’s independent financial authorities – the FCA, PRA and Bank of England - continue to closely monitor China’s economy.

Since 2008 there has been a concerted international effort to strengthen the global financial system. In the UK, banks now hold over three times more capital than they did at the time of the financial crisis.

The Bank of England’s Financial Policy Committee judges that the UK banking sector is resilient to a wide range of economic scenarios, including a contraction in both China and Hong Kong's economic activity. This judgement of the UK banking sector is supported by the interim results of the 2021 solvency stress test.

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