China

Off-balance-sheet WMPs filled the gap between assets and deposits.

The PBOC's balance-sheet claims on depository institutions hit US$1.4t as of July.

When one door closes, another one opens up. As deleveraging moves up in the scale of objectives of the Chinese leadership, banks now face more restrictions from regulators. In any event, this is not the first time they find themselves in the regulatory whirlpool. From the usage of repo agreements to wealth management products (WMPs), and most recently negotiable certificate of deposits (NCDs), banks have been very creative in playing the cat and mouse game in front of evolving regulations.

Loans are gradually repriced whilst deposit rates will likely remain unchanged.

The banks' net profit rose 7.9% in Q2.

The banks registered NIM expansion of 4-8bp.

Rust belt banks use shadow banking to conceal their bad loan status.

China Construction Bank eyes raising at least $15b.

The regulators and financial institutions seemingly have played a “Whack-A-Mole” game, says BBVA.

It represents almost a fifth of bank deposits.

Net corporate bond issuance has been increasing.

The value of third-party payments in China grew more than 74 times from 2010 to 2016.

Shadow banking assets reached US$9.5t in 2016, but growth is finally slowing down.

The enhanced regulation is finally showing some results.

Eight sets of rules were launched by the CBRC since March.

Moody's has revised its outlook for to stable from negative.