- China’s top banking regulator for the first time defined the criteria, scope and classification of the country’s nearly $13 trillion shadow banking sector in a continuing effort to defuse systemic financial risks as the country expands credit to support recovery from the pandemic.
- The narrow definition covers the riskier products and activities, including investment by interbank special purpose vehicles, interbank asset management, entrusted loans, trust loans, online P2P lending and nonequity private funds.
- As of the end of September, core shadow banking assets, which include outstanding entrusted loans, trust loans and undiscounted bankers’ acceptances, totaled 22.06 trillion yuan, down 2.8% from a year earlier.
China’s $13 Trillion Shadow Banking Sector Gets Clearer Definition
