CBIRC Stresses Commitment to Dismantling of China’s Shadow Banking Sector

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.” 

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