China told US officials its banks ‘doing well’ despite financial turmoil, Yellen says By Reuters

© Reuters. FILE PHOTO: A China yuan be aware is seen on this illustration picture Might 31, 2017. REUTERS/Thomas White/Illustration.File Photograph

By David Lawder

MILWAUKEE (Reuters) -U.S. Treasury Secretary Janet Yellen mentioned on Friday that Treasury officers visiting Beijing just lately obtained assurances that Chinese language banks are “doing nicely” regardless of turmoil within the nation’s monetary and actual property markets, including that she didn’t see massive spillovers to the U.S. economic system at this stage.

Yellen informed reporters throughout a go to to a Milwaukee job coaching middle {that a} U.S.-China Financial Working Group would meet in Beijing shortly for bigger discussions on China’s financial scenario.

The Monetary Working Group met final week and U.S. Treasury officers “centered on pressures within the monetary sector, within the banking sector, stemming from debt issues of native governments and the true property sector,” Yellen mentioned. “They obtained assurances that banks in China are doing nicely.”

Chinese language monetary markets, nonetheless, bought off closely this week as buyers each worldwide and home develop pissed off with the Chinese language authorities’s reluctance to take daring measures to shore up the economic system amid a protracted disaster in its actual property sector and debt pressures.

Requested concerning the potential for spillovers from China’s turmoil to the U.S. economic system, Yellen mentioned that there could possibly be affect.

“If progress slows to Asian nations which might be essential commerce companions, we may even see some spillovers. However I do not assume they’ll be very massive,” she mentioned.

Relating to calls to confiscate tons of of billions of {dollars} in frozen Russian property, Yellen mentioned she anticipated G7 finance ministers to quickly obtain a report reviewing potential authorized justifications and dangers related to seizing the funds and diverting them to help Ukraine.

Requested if the report could be prepared by the top of February, Yellen mentioned: “We’re working to do it rapidly.”

She has beforehand mentioned that a global regulation justification agreed by G7 nations could be wanted and that the U.S. Congress would wish to go laws to allow seizure of Russian property held within the U.S.