In 2013, shadow banking – unregulated, high-yield lending that largely takes place off banks' balance sheets – reached a record 30% of total financing in China. Total debt (encompassing central and local governments as well as corporate) now stands at over 200% of GDP.
Why shadow banking may never be properly regulated
The government's attempts to regulate shadow banking are being hindered by conflicts of interest, infighting between the industry and regulators, and disagreements over exactly where policy is needed
By
clpstaff