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在线翻译:
szdaily -> Business -> 
Spot checks on shadow banking taking place
    2018-05-31  08:53    Shenzhen Daily

THE country’s banking regulator is carrying out nationwide inspections on financial institutions such as trusts to check on their shadow banking and interbank activities, China Securities Journal reported yesterday quoting industry sources.

The move was in line with a notice issued by the China Banking and Insurance Regulatory Commission (CBIRC) in January that it planned to step up oversight to reduce financial risks, it said.

The CBIRC’s inspections, in particular, looked at companies’ channel businesses, which are financing services designed to help move deposits into risky investments via products often designed to dodge capital or investment regulations.

This has prompted some trust companies to suspend their channel business, the newspaper said.

China has in recent months displayed growing concern over the country’s shadow banking industry, involving lending conducted outside the formal banking system.

It fears that a big default or series of loan losses could cascade through the world’s second-biggest economy, leading to a sudden halt in bank lending.

The government is in the third year of a regulatory crackdown on riskier lending practices, which has slowly pushed up borrowing costs while reducing these alternative and murkier funding sources for companies such as shadow banking.

China’s overall debt level rose 2.7 percentage points in 2017 to 250.3 percent of gross domestic product due to the impact from China’s supply-side reforms, improving economy and corporate profits, the central bank has said.

China will actively and steadily tackle financial risks in the short and medium term, regulators have said.(SD-Agencies)

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