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Sichuan Trust
Sichuan Trust is a non-bank financial institution, based in China. It is headquartered in the southwest city of Chengdu. It is one of the shadow banking system, shadow banks in China. Current Issues In May 2020, Sichuan Trust disclosed about a 20 billion yuan deficit. Later, the deficit was estimated to be as much as 30 billion yuan. Sichuan Trust's financial difficulty started when the Chinese government began restricting new sales of trust products in 2020, which caused a loss of new incoming revenue from new investors so Sichuan Trust could not pay its debts. According to Diana Choyleva, chief economist at Enodo Economics, Sichuan Trust was the earliest to fail during the Chinese economic configuration. In 2021, police arrested Liu Canglong, Sichuan Trust's majority shareholder, who was a mining and real estate tycoon and was once the richest man in Sichuan, Sichuan province for embezzling trust funds. In January, several investors contacted National Financial Regulatory Adm ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Non-bank Financial Institution
A non-banking financial institution (NBFI) or non-bank financial company (NBFC) is a financial institution that is not legally a bank; it does not have a full banking license or is not supervised by a national or international banking regulatory agency. NBFC facilitate bank-related financial services, such as investment, risk pooling, contractual savings, and market brokering. Examples of these include hedge funds, insurance firms, pawn shops, cashier's check issuers, check cashing locations, payday lending, currency exchanges, and microloan organizations. In 1999, Alan Greenspan identified the role of NBFIs in strengthening an economy, as they provide "multiple alternatives to transform an economy's savings into capital investment which act as backup facilities should the primary form of intermediation fail." Operations of non-bank financial institutions are not typically covered under a country's banking regulations. Etymology The term ''non-bank'' likely started as ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |