HONG KONG: China’s banking regulator is pressuring banks to curb reliance on short-term borrowing and control risks from off-balance-sheet lending, according to a document obtained by Reuters, following two severe cash crunches in the last six months.
While China is pushing to reduce systemic risks posed by the rise of shadow banking, analysts say its focus is on curbing the riskiest off-balance-sheet lending practices rather than ending the practise altogether.
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