Off-Balance-Sheet Loans Double, Boosting Bank Default Risk: China Credit

"While global financial regulators are requiring more transparency and the People's Bank of China restricts credit to cool inflation, lenders have increased the off-balance sheet loans by 110 percent, central bank data show. Credit-default swaps on Bank of China Ltd. are on course for their biggest monthly rise since October 2008 and are the most expensive since May 2009, according to data compiled by Bloomberg."