- Title
- Banking in the shadows: A comparative study of China and India
- Creator
- Arora, Rashmi; Zhang, Quanda
- Date
- 2019
- Type
- Text; Journal article
- Identifier
- http://researchonline.federation.edu.au/vital/access/HandleResolver/1959.17/185598
- Identifier
- vital:16689
- Identifier
-
https://doi.org/10.1111/aehr.12167
- Identifier
- ISBN:0004-8992
- Abstract
- In recent years there has been increasing interest in the rise of shadow banking in China and India. In this paper, we aim to get a better understanding of the differences in trends and investigate the factors leading to the increase of shadow banking in these two major emerging economies. We find that financial exclusion is a common factor leading to the growth of shadow banking in both countries. While financial reform has taken place in India, financially repressive policies still prevail in China. Although several regulatory measures have been adopted in India and China, the size of the shadow banking sector in these two countries remains underestimated. Thus, streamlining and enhancing data collection is a key priority for both nations. We argue that regulation in both countries should be more activity focused (specific field in which a shadow bank is focused on) rather than sector or entity based, and it should be at par with banks. The shadow banks provide last mile connectivity to remote, distant, and ignored segments of the population not serviced by the formal financial sector. As this enhances financial inclusion, a balanced approach is required keeping in view both costs and benefits of the shadow banking system.
- Publisher
- Melbourne: John Wiley & Sons Australia, Ltd
- Relation
- Australian economic history review Vol. 59, no. 1 (2019), p. 103-131
- Rights
- All metadata describing materials held in, or linked to, the repository is freely available under a CC0 licence
- Rights
- © 2018 Economic History Society of Australia and New Zealand and John Wiley & Sons Australia,
- Subject
- Banking; Banking system; Banks (Finance); Benefit cost analysis; China; Comparative analysis; Comparative studies; Financial inclusion; India; Shadow banking; 3801 Applied economics; 5002 History and philosophy of specific fields; 4303 Historical studies
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