Shadow banking 'not biggest risk' to system

Banks' loan exposure to local governments and property developers is a far more serious and imminent threat to the mainland's financial system than shadow banking, according to Standard & Poor's.

In a report released yesterday, the credit ratings agency said shadow banking was "more a symptom than a cause" of emerging systemic risks to the country's banking sector and the wider economy.

via Business feed http://www.scmp.com/business/banking-finance/article/1202185/shadow-banking-not-biggest-risk-system