Tag Archives: Chinese banking system

Chinese banks have continued to expand rapidly both domestically and abroad. Together, they constitute the largest banking sector in the world by far. This column places the Chinese banking system in a global context. Although very small relative to their domestic claims, Chinese banks’ foreign claims are substantial for many borrower countries in Asia, Africa, and the Caribbean in particular. Many of these banking connections are related to Chinese outward foreign direct investment, with...

China’s shadow banking activity stopped growing during the first six months of this year, according to Moody’s Investors Service, growing slower than the country’s nominal GDP for the first time since 2012. Shadow banking assets’ share of GDP fell to 82.6% of GDP as of June 30 this year, compared with its peak of 86.5% in 2016, according to an announcement posted on Moody’s website. The statement cited the effectiveness of recent regulatory measures aimed at reducing the financial...