Friday, August 26, 2011

China Admits To $470 Billion In Its Underground Banking System

China magazine vendor

Image: flickr: shizao

In a closed-door government meeting, China Banking Regulatory Commission chairman Liu Mingkang announced that $470 billion was moving through so-called "black" banks in the country's Eastern provinces alone, according to Asia Times Online.
As Beijing tightens credit, small private businesses are having trouble getting loans. As a result, they're turning to unofficial sources to stay afloat, some even becoming lenders themselves.

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