Sunday, September 28, 2014
Why Did the Central Bank Reemphasize a Dialectical View on Shadow Banking?
ANBOUND
On September 25th, officials from China's central bank discussed the problem of shadow banking and re-stressed that concerning this issue, a "dialectical view" should be adopted. ANBOUND think tank scholars state that a “dialectical view” on shadow banking demands not only a realization of risks and advantages brought about by shadow banking, but also an awareness of inconsistence between the macro and micro practices involving the shadow banking supervision. Legalization and discreet macro supervision are the best paths to manage shadow banking, and the supervisors should endeavor to match their words with their actions.