Issues related to #shadowbanking are so complicated that it confuses many practitioners from the financial sector even today，said CF40 member Wu Ge,1/6 cf40.org.cn/uploads/201910…
Rather than #discriminating against this sector, a more active, positive and supportive approach should be adopted in order to guide the industry to develop in a more market-oriented way. 2/6
From the perspective of #liberalizing the interest rate, the development of shadow banking should not be excluded. Financial disintermediation can accelerate the marketization of interest rate. 3/6
The deposit and loan model of commercial banks can hardly meet the development needs of the real economy, for which a variety of financing models in the capital market such as financing provided by shadow banking are very crucial. 4/6
From the perspective of counter-cyclical macroeconomic adjustment, the shadow banking industry could further expand under proper regulation, or at least should be allowed to grow moderately in proportion to #China’s economic growth.5/6
Issues related to shadow banking are so complicated that it confuses many practitioners from the financial sector even today. 6/6
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