Sep
22
Shadow Finance Expansion by Chinese Banks Deepens Credit Mystery
By-
Banks are booking more assets as ‘receivables’ this year
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Rating agencies say it’s hard to assess their credit quality
China’s riskier banks are investing more customer funds in financing that is kept off their loan books, making it harder for rating companies to gauge their asset quality.
There has been a surge in a balance-sheet item known as receivables, which often includes shadow funding such as trusts and wealth products, said Moody’s Investors Service. Fitch Ratings said it is hard to analyze this escalation in activity. Listed banks excluding the Big Four saw short-term investments and other assets — which include receivables — jump 25 percent in the first half, compared with total asset growth of 12 percent, data compiled by Bloomberg show…
Shadow Finance Expansion by Chinese Banks Deepens Credit Mystery
