The International Monetary Fund (IMF) issued a report warning China that government control of the banking and financial sector was creating “a steady build-up in vulnerabilities,” The New York Times reported. The 125-page report highlighted the role state controls have played in high property prices, excessive lending and local government debt. The IMF hopes to pressure Beijing to speed up economic reforms and take a more market-oriented approach to banking and finance. “Take the training wheels off and let the banking system work,” said Jonathan Fiechter, one of the authors. Existing financial policies favor high levels of liquidity and savings, and a high risk of capital misallocation and asset bubbles, according to the report. While not predicting a financial collapse, the authors said these vulnerabilities could slow economic growth, for example with a fall in the efficiency of capital investment.