BEGIN:VCALENDAR
VERSION:2.0
PRODID:-//Talks.cam//talks.cam.ac.uk//
X-WR-CALNAME:Talks.cam
BEGIN:VEVENT
SUMMARY:China’s Shadow Banking: No Lehman Moment in Sight - Daniela Gabo
 r\, Professor of Economics and Macro-finance at the University of the West
  of England\, Bristol
DTSTART:20170201T140000Z
DTEND:20170201T160000Z
UID:TALK70551@talks.cam.ac.uk
CONTACT:Shuai Eddie WEI
DESCRIPTION:Chinese shadow banking has trippled since the crisis\, account
 ing for half of the increase in overall credit to the economy. With tighte
 r US monetary policy\, China watchers warn regularly\, a Chinese Lehman Br
 others is around the corner\, threatening the world economy. Yet a modern 
 money hierarchy approach suggests that such concerns are misplaced. Like b
 anks\, shadow banks also issue money – promises backed by tradable colla
 teral assets - to fund lending activities. In China\, one of every three R
 MB lent was funded by shadow money by 2016. While US shadow money fragilit
 y triggered Lehman’s collapse\, China’s shadow money is much more stab
 le for two reasons. Rather than simple regulatory arbitrage\, Chinese shad
 ow money is shaped by the Reminbi internationalisation strategy reliant on
  deepening capital markets. While policy-makers resist calls to allow the 
 adoption of ‘modern’ collateral risk practices\, China’s shadow mone
 y will not experience the fire sales and runs that brought down Lehman Bro
 thers\, triggering the global phase of the 2008 financial crisis.
LOCATION:Room S2\, Alison Richard Building\, Sidgwick Site\, 7 West Road\,
  CB3 9DT
END:VEVENT
END:VCALENDAR