The chinese banking system has become the world’s largest, according to one recent estimate. The significant increase in the size and scope of the Chinese banking industry is due in large part to dramatically growing loan growth. Strong lending – estimated by the Peoples Bank of China to be over RMB 2 trillion in January of 2017 alone – has been boosting China’s banking sector, but a delicate dichotomy exists. Chinese central planners like a small group to have centralized control over money supply. But other economic planners are concerned the economy is too dependent on the banking sector.

chinese banking system
chinese banking system christels / Pixabay

chinese banking system and shadow banking adds complexity to the problem in China


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