After reading the posted articles about Huarong Bank, and the background articles about healthy banking, discuss your
Question:
After reading the posted articles about Huarong Bank, and the background articles about healthy banking, discuss your impressions of Huarong and whether it may imply anything about the Chinese financial system as a whole. In particular, consider some of the following issues: why Huarong was a problematic institution and what led to its downfall; whether additional standards could have been put in place to minimize the risks, and who should be responsible for enforcing those standards (the institution, the government, or some other entity); and whether it was handled in the right way, or whether there are any implications of the choices that were made, in particular with regard to the principle of moral hazard.
https://www.bnnbloomberg.ca/china-s-very-bad-bank-inside-the-huarong-debt-debacle-1.1590460
https://www.pinebridge.com/en/insights/breaking-down-china-huarongs-debt-case
https://www.narrowroadcapital.com/memos/why-banks-fail-the-definitive-guide-to-solvency-liquidity-and-ratios/