{"id":30909,"date":"2018-02-12T12:52:37","date_gmt":"2018-02-12T17:52:37","guid":{"rendered":"http:\/\/olduvai.ca\/?p=30909"},"modified":"2018-02-12T12:52:37","modified_gmt":"2018-02-12T17:52:37","slug":"bis-publishes-a-simplified-map-of-chinas-shadow-banking-system","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=30909","title":{"rendered":"BIS Publishes A “Simplified” Map Of China’s Shadow Banking System"},"content":{"rendered":"
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BIS Publishes A “Simplified” Map Of China’s Shadow Banking System<\/a><\/span><\/h3>\n<\/div>\n
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While China’s shadow banking sector may have been tamed in the past year as a result of an aggressive crackdown by Beijing over the unregulated, gray-market in high interest lending and especially Wealth Management Products or WMPs, it, it still retains an aura of incomprehensibility – and thus fascination – to most market watchers.<\/p>\n

Still, while growth of shadow credit to ultimate borrowers has slowed, the use of shadow saving instruments (eg wealth management products, trust products) has continued to expand at a fast pace. New and more complex “structured” shadow credit intermediation aimed at reducing banks’ regulatory burden has emerged and quickly reached a large scale. Meanwhile, the bond market has become highly dependent on funding channeled through wealth management products. As a result, Chinese shadow banking is becoming slightly more similar to US shadow banking.<\/p>\n

To help China watchers in their analysis of China’s financial underworld, overnight the Bank of International Settlements published a working paper\u00a0 <\/a>mapping China’s shadow banking sector, which studies the “structure of the shadow banking system in China, focusing on the main activities and linkages with the formal banking sector.”<\/p>\n

As the BIS explains in its abstract:<\/p>\n

We develop a stylised shadow banking map for China with the aim of providing a coherent picture of its structure and the associated financial system interlinkages. <\/strong>Five key characteristics emerge. One defining feature of the shadow banking system in China is the dominant role of commercial banks, <\/strong>true to the adage that shadow banking in China is the “shadow of the banks”. Moreover, it differs from shadow banking in the United States in that securitisation and market-based instruments play only a limited role. <\/strong>With a series of maps we show that the size and dynamics of shadow banking in China have been changing rapidly.<\/p><\/blockquote>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

BIS Publishes A “Simplified” Map Of China’s Shadow Banking System While China’s shadow banking sector may have been tamed in the past year as a result of an aggressive crackdown by Beijing over the unregulated, gray-market in high interest lending and especially Wealth Management Products or WMPs, it, it still retains an aura of incomprehensibility […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[1733,2045,1269,130,431,6876,4318],"class_list":["post-30909","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bank-for-international-settlements","tag-beijing","tag-bis","tag-china","tag-interest-rates","tag-shadow-banking","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/30909","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=30909"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/30909\/revisions"}],"predecessor-version":[{"id":30910,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/30909\/revisions\/30910"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=30909"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=30909"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=30909"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}