How do you run a Chinese Bank?
It’s not at all hard to find China in the news headlines, given that increasing numbers of people — experts and ordinary citizens — reportedly see it fast arriving as the world’s new superpower.
Highly detailed views from particularly informed experts, however, are not so plentiful. A lengthy video discussion recently between Carl Walter of JP Morgan and Victor Shih of Northwestern University, hosted by G+, is “spectacular” (per MacroBusiness.com) and informative.
For me, one of the most thought provoking observations comes in the first video (starts at 13:44). Walter describes the reaction of the Chinese government to the 2008 financial crisis and the fall of Lehman Brothers. At that point, the highly alarmed Chinese, according to Walter, lost all faith in the Western financial model.
Summing this up, Walter says:
The Chinese want to have a clear model that they can try out and see if it works and then expand on, and now that [Western model] financial system is gone…
Watch the full discussion here, posted on MacroBusiness. Note — the comments section is also interesting.
