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The Risks of Shadow Banking

  • Andrew Collier
Chapter

Abstract

The chapter describes the potential for systemic collapse of China’s economy as a result of Shadow Banking. It explains the difference between the US mortgage crisis and China’s economic system and the relationship with Shadow Banking. It describes the stock market crash of 2015 and Shadow Banking. Liquidity issues in the Chinese banking system. It includes arguments around financial crises including the balance sheet argument and the credit to GDP gap. The chapter mentions Trusts as the weak link in Shadow Banking. It describes the related transactions and systemic risk and expresses concerns about concentration of risk among local banks and the property market and Shadow Banking and risk. It describes regulators’ attempts to reduce risk in China’s Shadow Banking market and includes a discussion of the risks of moral hazard in China.

Keywords

Financial Crisis Banking System Small Bank Trust Product Real Estate Development 
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.

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Copyright information

© The Author(s) 2017

Authors and Affiliations

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

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