America’s banks are big. China’s are massive

The size of China is massive, so are the commercial debts of the country’s companies. A course of not backing bad debt, especially as it is not concerning bank retail customers, is an official government policy in Beijing.

A problem in the banking system may have various trajectories. One of the most plausible, in line with official statements, would see retail customers fully compensated, while commercial ones (including debt holders) will be left out in the cold. Deriveum is designed to preclude such possibility by offering a whole new collateral class.

You may read the CNN article by clicking on the picture below.