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The Wild West of Bank Products

  • Andrew Collier
Chapter

Abstract

The chapter describes the importance of WMPs to banks and the relationship between bank WMPs and financial repression. WMPs rose from less than 4 trillion renminbi in 2010 to more than 17 trillion renminbi in 2014, and jumped another 57 percent to 23.5 trillion renminbi in 2015. In 2014, the biggest contributors to growth were the joint-stock or commercial banks, whose WMP balance rose 75 percent from 5.7 trillion renminbi to 9.9 trillion renminbi. The chapter explains the impact of the rise in WMPs to savings deposits in the formal banks. We include data on estimations of the concentration of wealth within the banks. It analyzes the breakdown on the distribution of WMPs by channel and describes bank earnings from Shadow Banking products.

Keywords

Commercial Bank Small Bank Bank Deposit State Bank Regulatory Arbitrage 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Bibliography

  1. Chen, K., et al. (2016). What we learn from China’s rising shadow banking: Exploring the Nexus of monetary tightening and banks’ role in entrusted lending. NBER. http://www.nber.org/papers/w21890
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  3. Liao, M., Sun, T., & Zhang, J. (2016c). China’s financial interlinkages. Washington, DC: IMF.Google Scholar
  4. Perry, E., & Weltewitz, F. (2015, June). Wealth management products in China. Sydney. Bulletin.Google Scholar
  5. Wildau, G. (2016, May 2). China financial regulator clamps down on shadow banking. Financial Times.Google Scholar

Copyright information

© The Author(s) 2017

Authors and Affiliations

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

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