U.S. should respond to widespread concerns of global community about SVB collapse: Chinese FM

(ECNS) -- The collapse of Silicon Valley Bank (SVB) has sent shock waves throughout the global financial market, so we hope the U.S. will increase transparency and enhance communication with the rest of the world and provide clarity on the exact size of the risk, steps to address it, ways to minimize its spillover as well as other widespread concerns of the global community, Chinese Foreign Ministry Spokesperson Wang Wenbin said at a press conference on Thursday.

This is a responsibility and what is expected of the U.S., Wang added.

According to U.S. media reports, 186 U.S. banks are at the risk of meeting a similar fate of SVB.

Wang pointed out that the U.S. dollar is an international currency. Given this, the U.S. should not simply anchor its monetary policy to domestic economic regulation goals. Instead, it needs to assess with caution any potential ensuing negative spillover. 

The spokesperson urged the U.S. to take responsible macroeconomic policy and credible steps to stabilize market expectations and investor confidence and avoid radical policy shifts that may cause serious spillover effects and repeat the history of the 2008 financial crisis.

We also call on the financial regulators of countries concerned to take concrete steps to keep money safe for all clients, including foreign depositors, he said. 

He noted that China stands ready to work with other economies to enhance macroeconomic policy coordination and jointly uphold global economic and financial stability.