Title

Shadow banking, Chinese style

Document Type

Journal article

Source Publication

Economic Affairs

Publication Date

10-1-2014

Volume

34

Issue

3

First Page

340

Last Page

352

Keywords

Credit intermediation, People's Bank, Securitisation, Shadow banking

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?

DOI

10.1111/ecaf.12086

Print ISSN

02650665

E-ISSN

14680270

Publisher Statement

Copyright © 2014 Institute of Economic Affairs

Access to external full text or publisher's version may require subscription.

Full-text Version

Publisher’s Version

Recommended Citation

Shalendra, D. S. (2014). Shadow banking, Chinese style. Economic Affairs, 34(3), 340-352. doi: 10.1111/ecaf.12086