Global watchdog warns next financial crash could come 'with a vengeance'

Crisis brewing in emerging economies

The banking industry's global watchdog has warned of a crisis brewing in China and emerging economies which could result in a similar crash to that witnessed in 2008.

In its 87th Annual Report, the Bank for International Settlements (BIS) pointed to the dangerously rising debt levels building up in China and emerging markets as key risks to market stability. According to the watchdog, China and other emerging regions, such as Thailand, are beginning to display similar signs of tension to those seen in the US and the UK leading up to the 2008 financial crash, according to City AM.  Claudio Borio, BIS chief economist, said: "The end may come to resemble more closely a financial boom gone wrong, just as the latest recession showed, with a vengeance." ...