The PBOC has more firepower to fight off recession than the Fed

Focus on supporting credit creation leaves China's banks better placed for growth

20200319 People's Bank of China.jpg

The People's Bank of China has taken a radically different approach to financial regulation. © Reuters

As the panicked stock sell-offs of recent days have shown, COVID-19 is having a huge impact on the global financial system.

Unlike during the 2008 global financial crisis, the problem is not overleveraged banks. Instead, economies are seizing up, cash flows are stopping and businesses are becoming unable to service their debts.

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