The size of the shadow banking system has shrunk very considerably since the time of the crisis.
Drilling into the data, Cheung highlighted the risks of over-leveraged local governments, unfunded pension plans and shadow banking.
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The shadow banking system is likely to become much smaller, so that it will not jeopardize the entire system.
The agency cited "underlying structural weaknesses" and a growing risk from shadow banking.
Financial products remain complex and shadow banking continues to be unregulated, Min Zhu told bankers at the World Economic Forum.
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The government will face the challenge of controlling rising financial and fiscal risks from shadow banking activities while ensuring stable growth.
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The existence of widespread shadow banking serving the private sector, however, indicates that state-owned enterprises have much easier access to credit.
The so-called shadow banking industry, an unregulated and fast-rising world of high-yield wealth-management products and underground lending, also continues to worry investors.
The so-called "shadow banking" industry, an unregulated and fast-growing world of high-yield wealth-management products and underground lending, also continues to worry investors.
That includes a contribution from what is known as shadow banking, lending by non-bank institutions or bank credit that is kept off the books.
But how much safer would everybody's savings be if the whole world finally came together to outlaw shadow banking systems and offshore tax havens?
Among many other proposals, it wants the shadow banking system to be subjected to the same sorts of prudential requirements that banks must follow.
Credit Suisse estimates that the so-called shadow banking system now totals Rmb22.8 trillion or 44% of GDP, making it the second largest asset class in China!
Concern centres on China's informal lending or shadow banking market - rich individuals and businesses that offer loans at interest rates spanning from 14% to 70%.
This is why enhanced supervision and regulation of shadow banking will be one of the top priorities for the Financial Stability Board in the coming months.
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Hedge funds, private-equity firms and other parts of the shadow banking system should go, along with over-the-counter derivatives (OTCs), collateralised-debt obligations (CDOs) and other nefarious structured products.
Shadow banking includes lending by nonbank institutions such as trusts, which are lightly regulated investment companies, as well as forms of bank credit that are kept off official balance sheets.
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This is as true of shadow banking systems as it is of licensed systems, as the secondary banking crisis of the early 1970s would have informed anyone working at the Bank of England.
In a meeting at the New York Fed Monday afternoon, 17 commercial and investment banks joined three fund managers (including the Chicago hedge fund Citadel Investment Group) and trade groups to talk about ways of providing better disclosure of the over-the-counter derivatives market, which is part of the so-called shadow banking system.
It is also unfair on the Fed, which had to stand in place of America's collapsed shadow-banking system.
The demise of the investment banks, with their far higher gearing, as well as deleveraging among hedge funds and others in the shadow-banking system will add to a global credit contraction of many trillions of dollars.
The question is whether the shadow system will influence traditional banking in the future.
It is second such set of stress tests for insurance companies, which shadow a similar exercise being carried out on the big banks by the European Banking Authority.
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