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Liquidity risk management and China's banks: BoC Fullerton profile

China’s interbank lending market recently came under the spotlight for all the wrong reasons. Simon Page, chief risk officer for Bank of China Fullerton, tells Asia Risk that firms must monitor liquidity risk management to succeed in the Middle Kingdom

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China SMEs pose higher risks

In June, China experienced a mini credit crunch with interbank borrowing rates spiking to double digits as authorities announced clampdowns on the shadow banking sector and asked banks to pay careful attention to their liquidity risk management.

The growth of the shadow banking market since 2009 has been unprecedented, with outstanding wealth management products (WMPs) rising to an estimated CNY13 trillion ($2.1 trillion) as of June, according to Fitch, but the Chinese authorities are starting

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