A diagram by the Bank of International Settlements ( BIS ) has revealed that China 's shadow banking sector is even more indecipherable and complex than its US counterpart . In particular analysts pointed to uncertainty about who would be financially responsible when a debt for equity funds emerged . “ New and more complex ‘ structured ’ shadow credit market has emerged and quickly hit a large scale , ” noted BIS , with this complexity packaged and sold through wealth management products . If there were to be a financial crash , this complexity would make it worse .
A diagram by the Bank of International Settlements (BIS) has revealed that China's shadow banking sector is even more indecipherable and complex than its US counterpart. In particular BIS pointed to uncertainty about who would be financially responsible when a debt for equity swap defaulted. “New and more complex ‘structured’ shadow credit intermediation has emerged and quickly reached a large scale,” noted BIS, with this complexity packaged and sold through wealth management products. If there were to be a financial crash, this complexity would make it worse.