Abstract

AbstractChina's shadow banking has been rising rapidly in the last decade, mainly driven by regulations for banks, the Fiscal Stimulus Plan in 2008 and credit constraints in restrictive industries. This sector has continued growing although the regulators repeatedly attempted to impose new regulations on banks and nonbanks. The existence of shadow banking fulfills the high demand for funding. The standard view is that it poses risks to financial stability. However, in China, this is not necessarily the case. Entrusted loans, implicit guarantees from nonbanks, banks or government may provide a second‐best arrangement in funding risky projects and improving welfare.

Highlights

  • Durham Research OnlineCitation for published item: Allen, Franklin and Gu, Xian (2021) 'Shadow banking in China compared to other countries.', The Manchester School., 89 (5). pp. 407-419

  • China's shadow banking has been growing significantly in the last decade

  • This paper aims to discuss the emergence, growth and components of China's shadow banking, provide a comparison with the counterparts in the United States, the United Kingdom and Europe and review the recent literature

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Summary

Durham Research Online

Citation for published item: Allen, Franklin and Gu, Xian (2021) 'Shadow banking in China compared to other countries.', The Manchester School., 89 (5). pp. 407-419. Publisher's copyright statement: c 2020 The Authors. The full-text may be used and/or reproduced, and given to third parties in any format or medium, without prior permission or charge, for personal research or study, educational, or not-for-prot purposes provided that:. A full bibliographic reference is made to the original source a link is made to the metadata record in DRO the full-text is not changed in any way The full-text must not be sold in any format or medium without the formal permission of the copyright holders. Please consult the full DRO policy for further details. Durham University Library, Stockton Road, Durham DH1 3LY, United Kingdom Tel : +44 (0)191 334 3042 | Fax : +44 (0)191 334 2971 https://dro.dur.ac.uk

| INTRODUCTION
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Findings
| CONCLUDING REMARKS
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