Guest Posting

If you wish to write and/or publish an article on Operation Disclosure all you need to do is send your entry to applying these following rules.

The subject of your email entry should be: "Entry Post | (Title of your post) | Operation Disclosure"

- Must be in text format
- Proper Grammar
- No foul language
- Your signature/name/username at the top

Send your entry and speak out today!

News Alerts


The timely passing of the spending bill was a significant move prior to the 26th.

What is "actually" contained in the spending bill will benefit us all.

Everything officially released is scripted and already done or agreed upon behind the scenes.

The Petrodollar will be forgotten once oil starts trading in gold-backed Yuan by the 26th.

The end of the Petrodollar is the end of Cabal leverage in the global economy.

The trading of oil in gold-backed currency will trigger the new financial system.

The RV was said to begin before the new financial system is triggered.

RV exchanges/redemptions will be processed through the new financial system's back screen rates via private appointment.

Your exchanged/redeemed funds will be in gold-backed Yuan or USN.

Withdrawal of these funds will temporarily be in your local fiat currency until the new financial system is officially triggered and all rates are reset.

Stay seated and enjoy the show.

Change is coming.




Featured Post

Restored Republic via a GCR as of March 24, 2018

Restored Republic via a GCR Update as of March 24 2018 Compiled 12:01 am EDT 24 March 2018 by Judy Byington, MSW, LCSW, ret. CEO, Child Ab...

Monday, May 2, 2016

China: Financial Regulator Clamps Down on Shadow Banking

May 2, 2016 11:23 am

China financial regulator clamps down on shadow banking

Don Weinland in Hong Kong and Gabriel Wildau in Shanghai


China’s banking regulator is cracking down on financial engineering that Chinese banks have used to disguise trillions of dollars in risky loans as investment products.

The clampdown, which will force banks to make provisions they previously avoided by disguising loans as investments, is designed to deflate one of the fastest-growing areas of the vast shadow banking apparatus, where bad debts are increasing.

Shadow banking emerged as a force five years ago, ranging from interbank transactions through to wealth management products, which promise inflated returns often backed by loans to struggling companies.

During the past three years, banks in China have used complex accounting techniques to move loans off the balance sheets and into a category of investments that requires less provisions than loans.

It has also reduced the rate of defaults that appear on bank balance sheets because the assets no longer have the characteristics of loans.

These so-called debt receivables have become one of the fastest growing areas of Chinese banks. Debt receivables increased 63 per cent to Rmb14tn ($2.2tn) last year, according to an analysis of 103 Chinese banks by Wigram Capital Advisors, equivalent to 16.5 per cent of the formal loan book.

Analysts say shadow banking poses a big risk to China’s financial system because many of the products are designed to skirt regulation and promote risk-laden investment.

Under the new rules, released at the weekend by the China Banking Regulatory Commission, banks can no longer use wealth management funds to invest directly or indirectly in their own investment products. The lenders will also have to fully provision for the investment products that are based on bank loans.

“If execution is right, I think you will see a major impact on the banks, especially some of the smaller ones,” said Wei Hou, director at Sanford C Bernstein in Hong Kong. “Some of the small banks could need additional capital.”

While smaller banks are most active in shadow banking, the big four state-owned banks also reduced provisions last year on their traditional loan books. By making less provision, the biggest banks were able to maintain largely flat profit growth last year. If they are forced to provision more for once-hidden losses, profit growth could decline faster this year.

Ratios for provisions on losses continued to fall in the first three months of the year, financial statements showed.

The provisioning ratio at China’s biggest bank,Industrial and Commercial Bank of China, fell to 141 per cent of bad debt, below the 150 per cent threshold set out by the regulator, which was recently lowered from 200 per cent. ICBC’s profit growth was nearly flat for the quarter.

Mid-sized Industrial Bank reported some of the highest levels of investment receivables in its first-quarter results. The bank held Rmb2tn in investment receivables as of the end of March, 36 per cent of its total assets and equivalent to the size of Singapore’s gross domestic product last year.

Copyright The Financial Times Limited 2016. You may share using our article tools.

Receive News from Operation Disclosure via Email

Shoutbox Disclaimer

Please be advised that the Shoutbox is NOT moderated. Use it at your own will.