Yellen says US, China worked on exercise for dealing with large bank failure

GUANGZHOU (Reuters) – U.S. Treasury Secretary Janet Yellen said on Friday that the United States and China have worked on an exercise for jointly dealing with a large bank failure in either country.

“We’ve held technical exchanges between our sides, including an exercise on how we would jointly deal with the failure of a large bank in the U.S. or in China,” Yellen said in a question and answer session at an American Chamber of Commerce event in the city of Guangzhou.

Yellen made the comment about the joint work between the two sides to model financial risks from a potential bank failure as an example of the recent cooperative work between the two countries.

(Reporting by David Lawder; Writing by Bernard Orr; Editing by Kim Coghill)