THE SECRETS OF THE CHINESE BANKING SYSTEM ARE DEEPLY ROOTED IN CHINESE SOCIETY WITH A TOTAL OF 46. 3 TRILLION! THE COMPLEX CHINESE BANKING SYSTEM IS OVER 300 TRILLION AND DEMONSTRATES THAT MANY LATENT HOLES ARE IN THE CHINESE BANKING SYSTEM THE TRADITIONAL BANKING OR MANIFEST FUNCTION OF CHINESE BANKING IS TO PROVIDE: (1) STORING MONEY; (2) SAVING MONEY; (3) LOANS: COMMERICAL OR RESIDENTAL; (4) MORTGAGES; (5) CREDIT CARDS.
THE PROBLEM WITH CHINESE BANKING IS THAT IT DOES NOT MEET THE NEEDS OF INNOVATIVE GROWTH, HIGHER INTEREST RATES FOR SAVERS, HIDING MONEY FROM THE GOVERNMENT, OVERSEAS INVESTMENTS, INDIVIDUAL OUTSIDE THE BANKING INDIVIDUALS, GAMBLING AS A FORM OF INVESTMENT,
CHINESE REAL ESTATE DEVELOPERS NEED TO FIND SOURCE OF MONEY THAT ARE NOT MANDATED BY THE GOVERNMENT. MANY INDIVIDUALS NEED HIGHLY FLEXIBLE LOANS AND GREATER SPEED TO CLOSE BUSINESS DEALS.
THE SHADOW BANKING SYSTEM PROVIDES 13% OF UNDERGROUND LENDING FOR GAMBLERS, INVESTORS, PAWN LOANS, FAMILY LOANS AND SMALL BUSINESS LOANS. MANY NEW BUSINESSES NEED PRIVATE EQUITY INVESTORS WHICH IS ABOUT 13% OF THE TOTAL 46 TRILLION.
THE NEED FOR MICRO-CREDIT FINANCIAL COMPANIES LENDING FOR VARIETY OF REASONS AND USE OF ENTRUSTED LOANS ABOUT 2%. THE GROWING SHADOW BANKING IN THE CASINO BUSINESS IS NECESSARY FOR CHINESE INDIVIDUALS FOR INVESTMENT OF THEIR MONEY IN CASINO GAMES. NEW CASINOS MEANS NEW MONEY FOR LOANS, CREDIT, STORAGE OF MONEY AND INVESTMENT FOR BUSINESSES.
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