It was a time of sharply rising debt in China, and
the risky shadow banking sector (i.e., off - balance sheet opaque lending) was growing rapidly, with few apparent controls.
Not exact matches
An apparent recent victory in that push is new data suggesting that the growth in the
risky «
shadow banking» sector is slowing this year.
The credit boom has been fueled by strong economic growth, a robust property market and a crackdown on
riskier shadow lending, which has forced
banks to shift some loans back onto their balance sheets.
The proposals include prohibiting issuers from dipping into their own capital to compensate investors for losses — closing a loophole thought to have encouraged
risky lending behavior and the growth of the
shadow banking business.
There is strong evidence that the
riskiest, worst performing mortgages were funded through the «
shadow banking system» and that competition from the
shadow banking system may have pressured more traditional institutions to lower their own underwriting standards and originate
riskier loans.