The Banks Jump into Shadow Banking

  • Andrew Collier


The chapter describes the growing involvement of the formal banks in the sale of Shadow Banking products. It analyzes the impact on bank profits of the sale of Wealth Management Products (WMPs). It mentions a brief history of China’s banking system including the separation of the lending banks from the central bank (PBOC). It analyzes the competitive pressures placed on banks by the growing Shadow Banking system, the impact of regulatory arbitrage on the formal banks, and the relationship between Trusts and banks in Shadow Banking. It then describes the growth of investment products on bank balance sheets as a means of evading lending restrictions.


Banking System Balance Sheet Investment Portfolio China Security Regulatory Commission Debt Security 
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Copyright information

© The Author(s) 2017

Authors and Affiliations

  • Andrew Collier
    • 1
  1. 1.Orient Capital ResearchHong KongHong Kong

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