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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

China unveils ‘Dodd-Frank-like’ reforms to tighten oversight

China unveils reforms to bring a unified approach to regulating the domestic asset management sector – seen as being at the epicentre of the country’s large shadow banking sector. By Justin Pugsley.

Basel Committee brings flexible and tailored approach to step-in risk

Basel Committee provides guidelines to banks on mitigating risk from potential problems in the shadow banking sector

US Treasury: 'Market based finance' more appropriate term than 'shadow banking'

US Treasury objects to the term ‘shadow banking’ as it implies unregulated activity and proposes 'market based finance' as a more appropriate description for the activities of non-bank financial institutions.

China ramps up measures against illicit shadow banking

China is set to unveil more measures as it cracks down on illicit shadow banking activities, reports Justin Pugsley.