Chinese banks on the brink of crisis

Chinese banks on the brink of crisis

China is it in terms of a major financial crisis? The tensions in recent days between Chinese banks, such as the strong reaction of the People's Bank of China ( PBOC ), the central bank, leaving some observers fear .

Thursday, December 19 , it announced that it had conducted injections of short-term liquidity in the markets , without specifying the amount .

Objective: off soaring interbank rates , those at which banks lend money , revealing that they are no longer trusted . The risk that the most vulnerable can no longer finance itself. This is called a liquidity crisis (cash crunch in English ) .