Shadow Lending Threatens China’s Economy, Officials Warn
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Shanghai’s financial district of Pudong. Chinese financial officials warned on Saturday about the dangers of shadow banking. CreditAly Song/Reuters
BEIJING — The chairman of China’s biggest bank and a senior Chinese insurance regulator issued strong warnings on Saturday about the dangers of shadow banking to the Chinese economy, in the latest signs of growing top-level concern here about a rise in highly speculative, poorly regulated lending.
Shadow banking, or lending that takes place outside official banking channels, plays a major role in the Chinese economy, where big government-controlled banks are often slow to lend to private businesses and entrepreneurs. But experts worry that untrammeled shadow lending could lead to ticking time bombs that could threaten the financial system of the world’s second-largest economy…
Shadow Lending Threatens China’s Economy, Officials Warn
