United front against financial woes

Coordinated policies from the central bank and the banking regulatory agency are needed to prevent risks triggering a crisis

China's shadow banking system, including its distinct interbank business, poses a big potential risk to its financial system, which, along with the real estate bubbles and the colossal local government debts, means the country's financial situation is very complicated.

If no timely measures are taken to regulate the country's sprawling shadow banking system and lower the high leverage ratio of commercial banks, the accumulated risks will further increase the likelihood of a financial crisis in the future.