Shadow Banking in China (eBook)

ANDREW SHENG is chief adviser to the China Banking Regulatory Commission, former chairman of the Securities and Futures Commission, Hong Kong and deputy chief executive in HKMA. NG CHOW SOON is the former director of the governor's office, Bank Negara Malaysia and a Harvard Mason Fellow.

Foreword

Acknowledgments

About the Editors

Executive Summary

Key Findings and Policy Recommendations

Chapter 1: Introduction
Andrew Sheng

Chapter 2: Shadow Banking in the Global Context
Cathleen Yi Tin

2.1. Introduction

2.2. What is Shadow Banking?

2.3. Size of the Global Shadow Banking Industry

2.4. Factors for the Rise in Global Shadow Banking

2.5. Interconnectedness Between Shadow Banks and the Formal Banking Sector

2.6. The Nature of Shadow Banking Differs across Countries

References

Chapter 3: Shadow Banking within the National Balance Sheet
Jodie Hu and Andrew Sheng

3.1. Introduction

3.2. Overview of Chinese National Balance Sheet

3.3. Who Owes What in China's National Balance Sheet?

3.4. Zooming in on China's Sectoral Balance Sheets

3.5. Shadow Banks within the National Balance Sheet

3.6. Evaluation of National Balance Sheet Approach

3.7. Basic Analytical CONCLUSIONS and Policy Recommendations from the NBS Approach

References

Chapter 4: Shadow Banking with Chinese Characteristics
Wang Yao

4.1. Introduction

4.2. Nature and Scale of Shadow Banking in China

4.3. Factors Spurring Growth of Shadow Banks in China

4.4. Different Channels of China's Shadow Banking

4.5. Inter-connectivity between Shadow Banking and Official Banking System

4.6. Shadow Banking's Impact and Regulatory Implications

4.7. Conclusion

References

Chapter 5: Inherent Risks in Chinese Shadow Banking
Wang Yao and Jodie Hu

5.1. Introduction

5.2. Getting to the Heart of the Problem - the Underlying Asset Quality

5.3. Non-financial Corporate Sector (excluding Real Estate Companies)

5.4. Real Estate Companies

5.5. Local Government Financing Platforms (LGFPs)

5.6. Non-performing Assets in the Shadow Banking System

References

Chapter 6: Impact of Technology on China's Financial System
Li Sai Yau and Cathleen Yi Tin

6.1. Introduction

6.2. The Rise of e-commerce in China and its Implications

6.3. The Rise of e-finance in China and its Implications

6.4. The Role of Technological Innovation in China's Transformation

6.5. Re-thinking Conventional Financial Regulation and Development

6.6. Implications for the Financial Services Industry

6.7. Conclusion

References

Chapter 7: Implications for Reform Agenda
Andrew Sheng

7.1. Introduction

7.2. On-going Shadow Banking Reforms in China

7.3. Financial Reforms - Looking Beyond Shadow Banking

7.4. Immediate-term Reform Priorities - Diagnosis and Damage Control

7.5. Loss Allocation - Medium-Term Measures

7.6. Mapping the Future of China's Financial System: A Potential Long-term Blueprint

7.7. Conclusion and Suggestions for Future Research

References

Chapter 8: Conclusion
Andrew Sheng

8.1. Introduction

8.2. Shadow Banking with Chinese Characteristics

8.3. Unique Opportunity for Reform

8.4. Reform Agenda Going Forward

8.5. Immediate-term Reform Priorities

8.6. Long-term Reforms: A Financial Blueprint

Appendix A: Evolution of International Financial Crises - Lessons for China
Li Sai Yau

A.1. Introduction

A.2. Comparing the Evolution of International Financial Crises

A.3. The Subprime Mortgage and ESDC Crises: Lessons for China

A.4. International Comparison of Nonperforming Loans (NPLs)

A.5. Conclusion

References

Index