Bank Regulators Caught Between Rock, Hard Place

Domestic markets have been rattled by news that the People's Bank of China plans to include banks' off-balance-sheet wealth management products into a measure it calls "broad credit," which is used to assess their capital adequacy. This is one of a range of indicators in a new Macroprudential Assessment system, which is part of the central bank's macroprudential policy framework aimed at maintaining financial stability.