The China Banking Regulatory Commission said Wednesday that it plans to rein in nonbank entities, the Wall Street Journal reported. The move is intended to tighten up monetary policy and prevent loans from flowing into overheated markets like property through alternative financing vehicles. The regulator also said it will crack down on illegal practices in the wealth management field, including banks purchasing wealth management products from each other. Banks still dominate credit supply in China; but as Beijing has attempted to clamp down on lending, alternative financial institutions and loan vehicles have sprung up to meet demand, including trust companies, credit-guarantee firms and wealth management products. Thanks in part to growth in these sectors, which some call the “shadow banking system,” Fitch Ratings estimated that in 2010 actual lending in China was 40% higher than the central banks’ estimate.