CSSN-China’s “shadow banking” system worth 27 trillion yuan: report

China’s “shadow banking” system worth 27 trillion yuan: report

Author : Source : Chinanews.com 2014-05-30

China’s “shadow banking” system has been valued at 27 trillion yuan ($4.4 trillion), according to the Annual Report on China's Financial Supervision and Regulation (2014) released on May 9 in Beijing.

The figure accounts for about 19 percent of all assets in the national banking system. The report found overall regulation of the “shadow banking” system is currently effective in China, but policies need to be improved in terms of pertinence, comprehensiveness and predictability. While continuing to encourage and develop future regulation of the “shadow banking” system, the report recommended firmly holding the bottom line of “no regional and systematic financial risk” and deepening reforms of China’s broader financial system.

The report’s launch ceremony was co-sponsored by the Institute of Finance and Banking under the Chinese Academy of Social Sciences (CASS) and Social Sciences Academic Press. It was organized by the Research Center for Financial Law and Regulation under CASS.

Translated by Yu Hui

Revised by Tom Fearon

Editor: Chen Meina