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China's banking regulator moves to contain off-balance sheet risk
China's banking regulator, in a move to rein-in the rapidly growing 'shadow loans' industry, has told commercial lenders to properly account for lending products that may appear on their balance sheets as lower-risk investments. Authorities are tightening scrutiny of the lenders as the growing use of complex financial structures has raised concerns that bad lending and credit risks can be concealed. The new rules forbid commercial banks from entering into repurchase agreements once a loan's income rights have been transferred, according to a document from the China Banking Regulatory Commission, a copy of which was ... (full story)