Chinese regulator says shadow banking sector needs constant scrutiny to guard against risks spilling over into the economy


Source: scmp.com scmp.com

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A top official at China’s banking and insurance watchdog stressed the need for tighter scrutiny to guard against shadow banking risks, while pointing out that regulatory efforts had significantly reduced activity in the sector. China needs to dismantle shadow banking risks and strengthen regulation to reduce related risks in the banking system, Liang Tao, vice-chairman of the China Banking and Insurance Regulatory Commission, said at a forum over the weekend. Liang noted that China’s shadow banking sector had shrunk by 29 trillion yuan as of end June from an all-time peak, which he did not specify. China’s shadow banking sector,...