China | China checks arbitrage activity to target shadow banking industry
Regulator is following the money.
Reuters/Jason Lee/Illustration/File Photo
Regulator is following the money. Reuters/Jason Lee/Illustration/File Photo

China checks arbitrage activity to target shadow banking industry

The China Banking Regulatory Commission wants to better understand the amount of leverage in the banking system

April 11, 2017 9:39 AM (UTC+8)

China’s banking regulator has ordered checks of lenders in areas such as regulatory arbitrage to better supervise the vast shadow banking sector, three sources familiar with the matter said.

The China Banking Regulatory Commission (CBRC) wants to better understand the amount of leverage in the banking system, the sources told Reuters late on Monday.

The CBRC could not be immediately reached for comment outside office hours.

The regulator on Monday issued guidelines on risk control for lenders, as authorities ramp up efforts to contain risks from a rapid build-up in debt.

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