Up until the crisis, however, there was no special insolvency law for banks that allowed creditors to be bailed in and took account of risks to financial stability. Fiscal and monetary policy had to step into the breach. The outcome is higher public fiscal debt and greater risks in central bank balance sheets.
The renminbi subsequently depreciated markedly and can now fluctuate more freely. Some voices in the media interpreted this as yet another deliberate attempt to manipulate the exchange rate with the aim of inducing an artificial devaluation. As they see it, China is supporting its own exporters by artificially boosting competitiveness. However, it is also a further liberalising step by the Chinese government.