【正文】 t think our banking sector is strong just because the other side had big problems. Our task is to improve our own management ability. The biggest weakness for domestic Chinese banks is management. Management problems require a turnaround of the business mindset. Chinese banks live and die by their loans. This will soon be difficult [continue]. A bank must find new growth points. That is quintessential wealth management. The challenges in the banking sector need to be met head on. The clients need more products and more service. But as long as your mind is open, innovative and keeps accepting new things, you can take charge. The overall management mindset is the biggest challenge in China’s banking sector and needs the most improvement. If your minds are not open and cannot be transformed, your products and services won’t go anywhere. Ma: The Chinese government is indeed facing the expectation that interest rates will increase and the renminbi will be revalued, which are the major challenges for China’s regulators right now. Because of the massive investment in every country last year, plus China’s high foreign exchange reserves will demand it to issue new currency, there is abundant liquidity in the country. Although we are not seeing a hyper inflation right now, but there are some asset bubbles. Part of the reasons that China has high housing prices is that the public is expecting inflation to grow, but not necessarily all the [house buying] is being done as an investment or speculatively. Most young people [think they] have to buy a house quickly or else they won’t be able to. Rising house prices in China will cause a lot of problems. Not only is the risk to the financial system higher, but also can lead to social conflicts because the other half of the population loses the right [to own a home]. The government may think of a way to make adjustments to reduce house prices. But they don’t want to let them fall too low all at once because it would cause all types of risks, including loan risks. I39。s because] the history of China39。s the center of attention now what we need to do is to try to resolve the situation there and then take it from Merchants Bank (CMB) opened its New York branch the first Chinese bank branch opening in the . after a decade on October 8, 2021, just as Lehman Brothers was in throes of collapsing and the global economic crisis began escalating. Having witnessed the crisis from the eye of the storm on Wall Street, and then the huge credit release in China last year, Ma Weihua, the bank39。s the situation. The question bees How can we best align and, perhaps, address discrepancies? It is there at the social is at the economic level. It is at the political level. And really it is the institutions, like we see in the financial system, which have to get together and develop these mechanisms. I think there39。 Gamble39。t think it is very likely. It39。t see how we can go ahead without more coordination some kind of mon policy. Having mon money without a mon fiscal policy doesn39。s just a problem that there is so much tax evasion in the country. They just let that problem grow in an uncontrolled way. That is also true of Italy, of course,I don39。s not just about economics. We can try to figure out what is the best technique of solution. We have great economists here at Wharton who could tell us the best solution from a technical point of view. But Saikat just mentioned that you also need to take into consideration what is possible politically possible and then what are going to be the consequences of this looking down the road, depending on how you proceed now. That39。t let [the EU] fail. It39。s time to create the right institutions and mechanisms for dealing with the kinds of financial crises seen in Europe last week. Will we see more crises? I think that in a global economic will see more crises. That39。t think about situations in which maybe the adoption of a mon currency would [create] stress and, in particular, the fact that even though there is a mon currency in the center of Europe there are no mechanisms in place really to make sure that all the countries are playing by the same rules and that all the countries are essentially plying with some basic criteria, which are half economic and half political. So this is not just about economics. It is also about politics criteria having to do with budget deficits and having to do with the way in which you are making sure your country can remain petitive after you have essentially given away a very important policy option in your toolkit, which is to devalue your currency. In other words, you are surrendering your sovereignty in terms of your currency, which means that when you are in hard times, you cannot devalue in order to bee more petitive. But at the same time, the architects of this moary union 10 years ago didn39。s Next for the European Union? European financial officials finally got out in front of swiftmoving market developments on May 10th by launching a huge $960 billion (750 billion euro) financial stabilization plan exceeding most expectations to bail out Greece and ensure the viability of the European Moary Union, at least for now. Some observers say the move prevented a potential financial meltdown in which concerns over sovereign debt defaults would have swiftly led to largescale bank runs in some European experts this week expected the package to continue to calm markets at least temporarily by guaranteeing most sovereign (and some private) debt in by providing credit for other troubled member economies in the future, including Portugal, Spain and Ireland. The bailout which also includes some bilateral loan agreements, . funds and dollar swap agreements through the Federal Reserve had the immediate effect of sweeping away fears o