The Indonesian government will no longer bail out commercial banks when they face financial problems, but will instead force the institutions to use their own assets or those belonging to shareholders to raise funds in a crisis, according to a new regulation Parliament passed late last week, The Wall Street Journal reported.

China’s central bank governor has warned that the country’s corporate debt levels are too high and are stoking risks for the economy, just as highly-leveraged Chinese companies have gone on an overseas takeover binge, the Financial Times reported. Adding his voice to a recent chorus of concern by senior Chinese officials, Zhou Xiaochuan, governor of the People’s Bank of China (PBoC), told global business leaders meeting in Beijing that the ratio of lending to gross domestic product was becoming excessive.

Here is a lesson on how Chinese debt restructurings play-out: the debtor comes out on top, The Wall Street Journal reported. Embattled Chinese property developer, Kaisa Group, which defaulted on $2.5 billion of bonds almost a year ago announced late Thursday it had made amends with its two dissenting creditors, Farallon Capital Asia and BFAM Partners. The long-drawn-out restructuring is effectively done, barring procedural court approval processes.

Chinese Premier Li Keqiang on Wednesday warned that a “dysfunctional” real economy is the biggest threat to financial markets as he vowed to press on with industry restructuring while maintaining economic growth rates of 6.5-7 per cent, the Financial Times reported. Speaking at the end of China’s annual parliamentary meeting, Mr Li sought to reassure an anxious public that Beijing still has the firepower to meet its financial commitments despite economic ructions.

Japanese companies have markedly slowed the pace of wage growth in one of the worst blows to hit the Abenomics stimulus since it was launched in 2012. As results of the annual “spring offensive” on wages poured in from across the manufacturing sector, many companies offered pay rises half the size of last year, and far below the pace needed to drive inflation to 2 per cent, the Financial Times reported. The results are a double blow to Shinzo Abe, prime minister, and the Bank of Japan.

A protest by Chinese coal workers over unpaid wages drew a swift, expected response: payoffs to get them off the streets and threats of police action if they don’t. The effort underscores the government’s long-standing worries about labor strife and its newly cautious approach to restructuring unprofitable state firms, The Wall Street Journal reported. Unrest in the northeastern city of Shuangyashan appeared to ease as Longmay Mining Holding Group Co., a huge employer, started disbursing some back pay on Monday, workers said.

The Bank of Japan said on Tuesday it would maintain its massive asset buying programme at existing levels but offered a bleaker view of the economy, suggesting it may roll out more stimulus as it struggles to reach an elusive inflation target, the International New York Times reported. However, the central bank appeared to back-pedal on its recent radical shift to negative interest rates, highlighting the dilemma the BOJ faces as it struggles to respond to renewed signs of economic weakness with dwindling policy options.

Chinese authorities are seeking to crack down on a surge of unregulated lending that is pushing up property prices in the country’s biggest cities, before it wreaks damage to the wider economy, the Financial Times reported. In comments at the weekend Zhou Xiaochuan, head of the People’s Bank of China, denounced loans for down payments on homes as illegal. Pan Gongsheng, a central bank vice-president, said regulators will act against the peer-to-peer companies that grant such loans.

Unconventional monetary policies of central banks in Europe and Japan received an endorsement from the International Monetary Fund yesterday, even as policymakers from emerging markets warned that such policies were increasing risks for the global economy, the Irish Times reported. The debate over the merits of such policies comes days before major central banks such as the US Federal Reserve, the Bank of England and the Bank of Japan unveil their interest-rate decisions.

China is exploring a new way to grapple with its mounting pile of bad corporate debt, though its top central banker sought on Saturday to dispel worries that the plan would simply shift the burden to other parts of the country’s vast economy, the International New York Times reported. Under the tentative proposal, Chinese officials would allow banks saddled with growing quantities of bad loans to sell that debt to investors, said Zhou Xiaochuan, the governor of the People’s Bank of China.