Swiss Nationwide Financial institution President Thomas Jordan delivers a speech throughout a press convention in Bern, Switzerland, on June 15, 2017. (Fabrice Coffrini/AFP through Getty Pictures)
ZURICH—The Swiss Nationwide Financial institution is carefully monitoring the state of affairs at China’s Evergrande Group, SNB Chairman Thomas Jordan mentioned on Thursday, amid considerations its debt issues might pose dangers to China’s monetary system.
“It’s unsuitable to be alarmist, however it is usually unsuitable to dismiss it as a neighborhood small downside,” Jordan instructed journalists on a name when requested in regards to the potential knock-on results for Switzerland.
“We’ve got seen again and again that seemingly small developments all of a sudden unsettle the monetary markets and trigger main corrections,” Jordan added. “We’ll comply with this carefully as all different central banks will do.”
Swiss banks haven’t thus far raised any purple flags about potential publicity.
“Credit score Suisse just isn’t an present lender to Evergrande and we’ve got no direct lending publicity to the corporate,” the nation’s second-biggest financial institution mentioned.
Credit score Suisse’s asset administration arm performed down the problem in posts on its balanced options and stuck funds on its web site.