shadow banking News

China Tightens Rules on $15 Trillion Asset Management Sector to Cut Systemic Risks

China’s central bank on Friday issued sweeping guidelines to tighten rules on asset management business, the latest step by Beijing to fend off systemic risks in the country’s rampantly growing shadow banking sector. The guidelines unified rules covering asset management …

Growth of China’s Shadow Banking Hikes Financial Risks for Banks, Insurers: Moody’s

Shadow banking activity in China has expanded further and now accounts for nearly a third of the total banking sector assets, raising financial risks in the world’s second-largest economy, rating agency Moody’s Investor Service said on Wednesday. Shadow banking assets …

EU’s Shadow Banking Rules Arrive, Intending to Prevent Credit Crunch Rerun

A European Union regulation intended to prevent a rerun of the global credit crunch by shining a light on financing arrangements such as repurchase agreements, securities lending and margin loans comes into force on Tuesday. The EU’s Securities Financing Transactions …

Update: Russell Investment Exits Joint Venture With China’s Ping An

Russell Investment Management and China’s Ping An Insurance Group said they have terminated their investment joint venture after four years, the latest sign of friction between foreign fund managers and their Chinese partners. The joint venture, launched in March 2011, …

Regulators Concerned About Risks in $75 Trillion Shadow Banking Sector

Authorities are nowhere near to fully understanding “shadow banking” as the $75 trillion sector morphs and grows under the influence of new technology and regulation, a top markets supervisor said on Wednesday. Shadow banking refers to the supply of credit …

China: Domestic Insurers Must Boost Capital to Cover Shadow-Banking Risk

China’s Premier Li Keqiang has told the world’s fastest-growing major insurance industry to boost capital as rating companies warn of shadow-banking investments. Policy providers will need cushions commensurate with their risks rather than just size, the industry regulator said Feb. …

China Forms 1st Insurance Fund to Cap Financial Risk in Shadow Banking

China on Friday set up its first insurance fund for its $2.1 trillion trust industry in a move to reduce financial risk in shadow banking, the country’s banking regulator said. The fund, jointly established by China Trustee Association and 13 …

China Insurers Face Shadow Banking Default Risk: Ratings Agencies

A doubling in the trust holdings of China’s insurers has prompted ratings companies to warn the industry may be taking on too much shadow banking default-risk. Insurers held 281 billion yuan ($46 billion) of trust products on June 30, surging …

G20 Regulator Toughens Rules for Non-Bank Financing

Global regulators are making it more expensive for hedge funds and insurance companies to raise money from loaning shares in a bid to curb hitherto unregulated risks in “shadow banking.” Securities financing are typically short-term money-raising transactions between banks and …

G20 Leaders Expected to Back Easy Rules on Shadow Banking

World leaders are expected to take a softly-softly approach to regulating the so-called shadow banking sector when they meet in Russia next month to avoid damaging the flow of finance to the global economy. While governments have cracked down on …