Government measures to capture the scope of the shadow banking sector in China have failed to account for as much as RMB16 trillion (US$2.6 trillion) of financing issued largely in the last two years by firms not overseen by the country’s banking regulator, Reuters reported, citing its own calculations based on third-party statistics. The official government measure known as total social financing shows the sector contracting in the second half of 2014 to roughly RMB21.9 trillion (US$3.5 trillion), according to Reuters’ analysis of central bank data. However, when financing from firms overseen by the China Securities Regulatory Commission is accounted for, shadow banking is equivalent to more than 45% of loans in the conventional banking system.