China Gets Protectionist: Cuts Off Inter-bank Lending to U.S. Banks Only

Posted: September 25, 2008 in Your Money
Tags: , ,

South China Morning Post: China stops its banks from lending to U.S. banks

  • Mainland regulators have told domestic banks to stop lending to United States financial institutions in the interbank market in a bid to prevent possible losses during the financial crisis, industry sources said yesterday.
  • The ban from the China Banking Regulatory Commission (CBRC) applied to interbank lending of all currencies to US banks but not to banks from other countries, a source said.
  • Mainland banks had US$9.8 billion in exposure to US subprime loans at the end of last year and US$25 billion to Fannie Mae and Freddie Mac by June 30.
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