China’s Financial Interlinkages and Implications For Inter-Agency Coordination
IMF Working Papers, August 26, 2016
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Bibliographic details
- Authors: Min Liao, Tao Sun, Jinfan Zhang
- Published: August 26, 2016
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781475530490.001
Summary
- China’s financial system has become very large, diversified, and interconnected. This changing financial landscape could potentially produce systemic risks, arising primarily from growing financial interconnectedness.
- The paper argues that, to address the potential systemic risks, Chinese authorities should further strengthen internal coordination, notably by institutionalizing better information collection and sharing among regulators, as well as enhancing coordinated and comprehensive analysis of systemic risk.
Major findings
- The financial system in China is "very large, diversified, and interconnected."
- Potential systemic risks arise primarily from growing financial interconnectedness.
- Key areas of concern include interactions between banks and nonbank financial institutions, off-balance-sheet business, and cross-market capital flows.
Policy recommendations
- Further strengthen internal coordination among Chinese financial authorities.
- Institutionalize better information collection among regulators.
- Institutionalize better information sharing among regulators.
- Enhance coordinated and comprehensive analysis of systemic risk.
Key statistics and identifiers
- Authors: Min Liao, Tao Sun, Jinfan Zhang
- Date: August 26, 2016
- Pages: 30
- Volume: 2016
- Issue: 181
- Series: Working Paper No. 2016/181
- DOI: https://doi.org/10.5089/9781475530490.001
- Stock No: WPIEA2016181
- ISBN: 9781475530490
- ISSN: 1018-5941
Subjects and keywords
- Subject: Bank credit, Banking, Financial institutions, Financial markets, Financial sector policy and analysis, Financial sector stability, Financial services, Nonbank financial institutions, Shadow banking, Stock markets, Systemic risk
- Keywords: bank, bank asset quality, bank assets, bank depositor, bank WMPs, banks profit, China, cross-market capital flow, financial institution, financial landscape, Financial sector stability, financial system, Global, market, nonbank, nonbank capital, Nonbank financial institutions, nonbank institution, off-balance-sheet business, off-balance-sheet financing, off-balancesheet business, policy coordination, risks, Shadow banking, Stock markets, Systemic risk, WP
Source: IMF Working Papers — Min Liao, Tao Sun, and Jinfan Zhang, "China’s Financial Interlinkages and Implications For Inter-Agency Coordination", August 26, 2016.