China to Designate More Financial Firms as Too-Big-to-Fail

The transcript discusses a regulatory announcement about expanding the list of financial institutions considered too big to fail. It outlines the methodology for this designation, focusing on institutions with significant assets or those making up a large portion of an industry's assets. The discussion highlights the interconnectedness of China's mega banks and their potential impact on the global economy. The process for designating Systemically Important Financial Institutions (SIFIs) is also covered, emphasizing the need for stability in the financial system.

What will happen after the designation of financial institutions is made?

What challenges do Chinese banks face according to the text?