Regulatory Uncertainty Hindering Foreign Banks in China: CIFR | Law

Regulatory Uncertainty Hindering Foreign Banks in China: CIFR

Associate Professor Deborah Healey comments in Regulation Asia on a report funded by CIFR which suggests China is likely to put stability and national economic development before competition when ruling on bank mergers, creating a potential barrier for foreign lenders looking to expand their business (10 November 2015).

“The rigid nature of banking regulation in China has created a very stable system but it has also driven more conduct into the shadow banking system,” she said. “While this clearly provides competitive tension for some categories of borrowers and lenders, it also increases systemic risk.”

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