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Article
Shadow banking, Chinese style
Economic Affairs
  • Shalendra SHARMA, University of San Francisco, United States, and Lingnan University, Hong Kong
Document Type
Journal article
Publication Date
10-1-2014
Keywords
  • Credit intermediation,
  • People's Bank,
  • Securitisation,
  • Shadow banking
Disciplines
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
Language
English
E-ISSN
14680270
Publisher Statement

Copyright © 2014 Institute of Economic Affairs

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