• Corpus ID: 4012240

The Economics of Shadow Banking : Lessons from Surrogate Intermediaries in China ∗

@inproceedings{Ruan2017TheEO,
  title={The Economics of Shadow Banking : Lessons from Surrogate Intermediaries in China ∗},
  author={Tianyue Ruan and Nyu Stern},
  year={2017}
}
The shadow banking sector has grown tremendously in China in the last decade, developing in parallel with the rise of non-bank lenders in western economies. Chinese non-financial firms supply credit in the shadow banking sector, i.e., they behave as “surrogate intermediaries”. Using hand-collected data on the entrusted loans made by listed firms to other firms, this paper analyzes the causes and consequences of this phenomenon. Deposit funding declines and therefore constrains loan growth… 
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