Shadow banking, Chinese style

Research output: Journal PublicationsJournal Article (refereed)

4 Citations (Scopus)

Abstract

Shadow banks are broadly defined as entities which conduct credit intermediation outside the formal banking system. Poorly regulated, engaging in opaque forms of intermediation, deeply interconnected with the official banking system, and operating with implicit government guarantees, they pose a major source of systemic risk. Yet shadow banks provide an important service by channeling credit to excluded investors, and can complement the formal banking sector. What explains the rapid proliferation of shadow banks in China? How large are they and what forms do they take? What types of risks do they pose to the financial system? And how best can China utilise the services of shadow banks while at the same time ensuring that they do not create systemic risks for the financial system?
Original languageEnglish
Pages (from-to)340-352
Number of pages13
JournalEconomic Affairs
Volume34
Issue number3
Early online date17 Oct 2014
DOIs
Publication statusPublished - Oct 2014

Keywords

  • credit intermediation
  • People’s Bank
  • securitisation
  • shadow banking

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