China’s shadow-banking participants, often shady non-bank credit intermediaries, are slowly coming to heel as the government ramps up its efforts to curb leverage in the sector. Once accounting for 87 percent of GDP, the growth of shadow banking’s assets were outstripped by the country’s overall GDP growth during 2017, indicating that China’s financial dragon may finally have been subdued by regulators.
China Banking Regulatory Commission
It is no secret that China has been facing serious problems related to its mounting debt levels. The growing pile of bad loans, especially from the country’s corporate sector, has raised red flags at many of the world’s leading research institutions.