Implicit guarantees and the rise of shadow banking: The case of trust products
(2023)
Journal Article
Allen, F., Gu, X., Li, C. W., Qian, J. "., & Qian, Y. (2023). Implicit guarantees and the rise of shadow banking: The case of trust products. Journal of Financial Economics, 149(2), 115-141. https://doi.org/10.1016/j.jfineco.2023.04.012
Implicit guarantees provided by financial intermediaries are a key component of China's shadow banking sector. We show theoretically that project screening by intermediaries, accompanied by their implicit guarantees to investors, can be the second-be... Read More about Implicit guarantees and the rise of shadow banking: The case of trust products.