China’s banking regulator moves to contain off-balance sheet risk

May 3 China’s banking regulator, in a move to rein-in a rapidly growing ‘shadow loans’ industry, has instructed commercial lenders to properly account for lending products that may appear on their balance sheets as lower-risk investments.

Authorities are tightening scrutiny of the lenders, as the growth of complex financial structures by commercial lenders may be used to conceal bad lending and credit risks.

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