US Secretary Says China Can Handle Shadow Banking

China has the capacity to manage shadow banking which is not yet a global systemic issue, U.S. Treasury Secretary Jack Lew said on Friday.

“I think we’ve seen China take steps over the last six months that show that they are concerned about this and they are not going to just let it continue growing without any kind of oversight,” Lew said in an address in Sydney ahead of the G-20 financial ministers meeting this weekend.

“It is clearly a challenge that China has to deal with, and I think it will be one of the topics we’ll talk about at the G-20 because it’s a global concern,” Lew said, adding that he is taking comfort from the relative small size of the China’s shadow banking sector “compared to the size of the Chinese economy.”

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza