论文部分内容阅读
Shadow banking in China has grown very rapidly during the past decade.This paper studies the causes and impending consequences.We begin by documenting important differences in the cross-section of Chinese banks to isolate the regulatory triggers for shadow banking.We then build a model that rationalizes the facts and use it to conduct policy experiments.We find that asymmetric competition between banks is both a short-run stabilizer and a long-run risk,with new regulations potentially exacerbating the tipping point.