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China must prioritise financial stability over rapid economic growth: IMF

China's credit-to-GDP ratio is very high by global standards and consistent with a high probability of financial distress, the IMF said

Reuters  |  Beijing 

China should prioritise financial stability above development goals, as pursuit of regional growth targets and helping firms avoid heavy job losses had led to a surge in debt, particularly at local government level, the International Monetary Fund said. Noting a lack of coordination and inadequate systemic risk analysis in a report released on Wednesday, the IMF also recommended the formation of a financial stability sub-committee comprising the central bank and three financial regulatory agencies, and an increase in staff for the banking watchdog. Since the IMF's last ...

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First Published: Thu, December 07 2017. 09:52 IST
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