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BoE's Carney sees risks in China's shadow bank sector 

March 3, 2014

China's shadow banking sector contains clear risks that financial authorities there are trying to manage without upsetting the broader economy, Bank of England Governor Mark Carney said.

China's financial regulators are trying to crack down on explosive growth in complex interbank transactions used to evade lending restrictions so as to curb excess credit growth and prevent a debt crisis as China's economy slows.

The push by the authorities comes as banks have found ways to expand credit through shadow banking channels that have raised concerns over the potential for systemic risk.

Read more: Reuters

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