More than 80 businessmen mysteriously disappeared or committed suicide to avoid repaying debts to informal lenders.
In a Bloomberg report, the head of the nation’s banking regulator said that risks stemming from China’s shadow banking system and private lending must be “strictly controlled,” and such loans will be curbed.
Liu Mingkang, chairman of the China Banking Regulatory Commission, said that the dilemma is still manageable and that the government already implemented ‘effective measures’ to control the risks.
Bloomberg noted that credit squeeze drove the businessment to resort to ‘shadow banking’ just to get loans. Unfortunately, more than 80 businessmen in the eastern city of Wenzhou have disappeared, committed suicide or declared bankruptcy to avoid repaying debts to informal lenders, the official Xinhua News Agency reported on Oct. 12.
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