Shadow banking in China and policy implications for Vietnam

Abstract

The term shadow banking has gained significant attention in recent years,
particularly in the period following the 2007–2009 global financial crisis. To better
understand the nature of shadow banking, along with its potential benefits and risks to
a national economy, this article conducts an in-depth examination of the shadow
banking system in China, a neighboring country that shares several structural and
economic similarities with Vietnam. Drawing on insights from the Chinese context, the
article offers a number of policy recommendations aimed at controlling shadow
banking activities in Vietnam in the near future.