Skip to main content

Shadow banks are getting squeezed

Zhongzhi won’t be the last shadow bank to run into trouble. Others are also suffering from mounting losses on their assets and a funding squeeze as cautious investors shift money into deposits and government bonds. But shadow banking isn’t as important to China’s financial system as it once was and doesn’t pose as big a systemic threat as some fear.  

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.

By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.