China’s banking regulator has reiterated its commitment to containing the country’s shadow banking sector in 2020.
At a recent press conference held by the State Council Information Office a senior official from the China Banking and Insurance Regulatory Commission (CBIRC) said that 2020 would see the “continued dismantling of shadow banking, heavy pressure on high-risk shadow-banking operations, and prevention of its revival from the ashes.”
The remarks come just after the release of CBIRC’s “Guidance Opinions Concerning Driving High-quality Growth of the Banking and Insurance Sectors” (关于推动银行业和保险业高质量发展的指导意见) on 3 January.
CBIRC has also announced that during the three years since the launch of a crackdown in 2017 the shadow banking sector in China has contracted by 16 trillion yuan (approx. USD$2.3 trillion), leading to the “effective containment of risk.”