‘Ordered banks to transfer off-balance-sheet loans onto their books’

Lifted from comments in open thread by reader sgetz99:

August 10 – Bloomberg (Jungmin Hong and Saeromi Shin): “China’s banking regulator ordered banks to transfer off-balance-sheet loans onto their books and make provisions for those that may default… The assets linked to wealth management products provided by trust companies must be shifted onto banks’ balance sheets by the end of 2011″

I wish our regulators had the power and were capable of making such s smart decision. If China can avert a large part of the fallout from an inevitable credit contraction, it will be a testament to what an important role regulation can play when its not copted by the players in the game.