IDEAS home Printed from https://ideas.repec.org/h/spr/sprchp/978-3-319-40451-6_6.html
   My bibliography  Save this book chapter

Credit Black Market

In: China’s Financial System

Author

Listed:
  • Dominique Rambures

    (Paris I University Panthéon Sorbonne)

  • Felipe Escobar Duenas

    (Paris I University Panthéon Sorbonne)

Abstract

According to a central bank annual report (2015), non-bank lending accounts for 30% of the total bank credit in China. In the same report, there is a discrepancy between the growth of money supply and the growth of credit supply. Given that money creation is owed primarily to bank credit, there is a leak in the money supply. A number of companies and households that have no access to bank credit turn to the informal credit market. In this regard, the fast growth of non-bank lending is a sign of a financial system that is unsuitable for the needs of the economy. However, informal credit is not specific to China. In the UK, non-banking credit accounts for 3.5 times GDP and 8 times the volume of banking credit [1]. In China the high level of non-bank credit is both a sign of a highly sophisticated alternative source of lending and a remnant of old lending practices.

Suggested Citation

  • Dominique Rambures & Felipe Escobar Duenas, 2017. "Credit Black Market," Springer Books, in: China’s Financial System, chapter 6, pages 75-89, Springer.
    • Handle: RePEc:spr:sprchp:978-3-319-40451-6_6
    DOI: 10.1007/978-3-319-40451-6_6
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:sprchp:978-3-319-40451-6_6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.