ABSTRACT
The shadow banking system can be defined as financial intermediaries that conduct maturity, credit and liquidity transformation outside of the traditional bank lending system. It often includes newly innovated products and instruments. The Chinese shadow banking system has a special function in credit creation; most shadow banking institutions supply loans backed by money collection instruments rather than certificates of deposit. This chapter discusses the importance of financial data in monitoring finance. It describes and examines the types of shadow banking instruments in China, existing availability of data, and gaps in data that render quantifying the shadow banking sector overall and in terms of risk a challenge. The modern financial sector is a whole system that includes securitization and repo markets in the shadow banking sub-system. The core of the shadow banking system includes special purpose vehicles (SPVs) used for conducting securitization and repo transactions.
