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China's loan sharks circle in murky shadow bank waters
China's crackdown on risky lending has driven borrowers into an even darker place in their search for capital - underground banking. The domain of loan sharks, underground lending is the least regulated area of China's shadow banking, or non-banking, sector and for some it is seen as the biggest risk to China's financial stability. It connects China's army of wealthy savers with mostly small borrowers unable to access normal lending and who can end up paying exorbitant annual interest rates of 100 percent or more. At 8 percent of China's $9.4 trillion economy, according to IMF estimates, it is a surprisingly large ... (full story)
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