Via the UK Telegraph - a further look at The World Bank's October report on the East Asian and Pacific economies
- Chinese debt levels, and specifically "shadow banking" ... one of the greatest threats to regional prosperity
- "creating additional vulnerabilities in the financial sector"
- The three most representative shadow banking activities; entrusted loans, trust loans, and bankers' acceptances, had "soared from under 7pc of GDP in 2005 to over 31pc of GDP in 2016," the World Bank warned.
More at the link, above
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Shadow banking:
- People's Bank of China defines as "credit intermediation involving entities and activities outside the regular banking system"
- Has been variously estimated to consist of between 8-80pc of GDP
- Ratings agencies such as Standard and Poors and the IMF have struggled to determine what the term ought, and ought not, to include.
