Mainland authorities have signaled they are ready to accept the threat of volatility from financial institutions going bankrupt, with official calls for an orderly way to let failed players go bust. Central bank deputy governor Zhang Tao said on Sunday that ensuring the stability of the financial sector did not mean protecting every institution against failure, the South China Morning Post reports. Beijing is trying to shake the long-held public perception that financial institutions like banks and insurers are backed and endorsed by the state and therefore unlikely to go bust. As part of those efforts, Beijing had to launch a deposit insurance program, a credit information system and exit mechanism for financial institutions.
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