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.”
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