Small, Medium-Sized Banks Will Have to Learn How to Price Risk, Says CICC’s Liang

The video discusses China's interest rate liberalization process, focusing on the role of the PBOC and the impact on large and small banks. It highlights the challenges and opportunities for banks in pricing risks and the potential risks associated with the reform, drawing parallels with past crises in other countries.

What major risk is highlighted in the text regarding the competition among banks?

What historical example is mentioned in relation to the potential problems arising from aggressive lending?