Shadow BankingRSS

China plans more cash management product rules

China is apparently planning tougher rules on the pricing and fund inflows into the $2tn cash management products (CMP) industry.

Chinese flag

Asifma calls on China to make further asset management reforms

Asifma has laid out a series of recommendations covering regulatory clarity, taxation and guidance that it hopes the Chinese authorities will apply to the oversight of foreign asset managers

Colin Chang

Corporate leveraged loans could face more rules after FSB investigation

Global supervisors have become increasingly twitchy over potential systemic risks with corporate leveraged loans being investigated as a possible catalyst to a future global financial crisis by the Financial Stability Board

Non-bank financial entities continue to expand, but at slower pace - FSB

Non-bank financial entities, sometimes called shadow banks, are continuing to grow says the FSB, albeit at a slower pace. Nonetheless, it has identified some areas where systemic risks could be lurking

S&P warns over default risks associated with China local government debt vehicles

Credit rating agencies have been warning over risks associated with local government debt vehicles in China, which could trigger a wave of company defaults should they run into trouble

China crackdown on fintech firms hits float plans

Chinese fintech firms delay IPO plans as local regulators intensify crackdown on the non-banking financial sector 

Jon Cunliffe

Rise of market-based finance “not a major threat to financial stability”

Market-based finance providers such as asset managers have helped to dramatically increase the size of the shadow banking sector, raising the spectre of toxic risks finding a new home. But this is a thesis challenged by the Bank of England’s deputy governor for financial stability. By Justin Pugsley. 

Shaghai skyline

China’s fast-evolving shadow banks deepen links with formal sector

China’s rapidly evolving shadow banking sector has been affected by a raft of new rules, but is nonetheless finding ways to adapt and is deepening its links with the formal sector. By Justin Pugsley.

Shadow banking assets grow 7.6% to $45tn according to FSB study

Shadow banking is still growing quickly says the Financial Stability Board, but gives reassurance that the most toxic aspects of it have been tamed.

China looking to include more markets in its macro-prudential assessment

The People’s Bank of China is looking to include more credit type markets in its macro-prudential assessment to better capture growing systemic risks