Yellen says major Chinese banks are wary of violating US sanctions against Russia

NEW YORK (Reuters) – U.S. Treasury Secretary Janet Yellen said on Thursday she believed China’s biggest banks were mindful of U.S. sanctions against Russia and did not want to violate them, adding He added that the United States would not rule out taking action if such a situation occurred. decide it is necessary.

“China’s largest financial institutions are trying to avoid being designated as sanctions violators, and I think they have a very strong incentive,” Yellen told reporters after speaking at the New York Economic Club. .

“I’m not saying we won’t single out major banks if we find systemic violations,” Yellen said, adding that “the major banks in China really, really value their relationships with correspondent banks.”

Yellen also told reporters that the latest sanctions against Russia, aimed at “gearing” the country, were unlikely to cause any unforeseen problems.

“We are in communication with our partners on this matter,” Yellen said of the impact of the new sanctions. “We have communicated that to our allies in advance. We have looked into what the consequences might be and we believe it is doable.”

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Reporting by Michael S. Derby and Lananh Nguyen. Editing: Diane Craft, Chizu Nomiyama

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Lanan Nguyen is the U.S. finance editor for Reuters in New York, where he leads coverage of U.S. banks. She joined Reuters in 2022 after reporting on Wall Street for the New York Times. Lannan spent more than a decade at Bloomberg News in New York and London, where he wrote extensively about banking and financial markets, and previously worked at the Dow Jones Newswires/Wall Street Journal. Lannan holds a bachelor’s degree in political science from Tufts University and a master’s degree from the same university. in Finance and Economic Policy from the University of London.

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