But retarding effects on resurgent activity in Germany would be something to be concerned about only if there were to be a dramatic slump in the Chinese economy. According to our estimates, a 4%-points drop in growth in China would lower German gross domestic product by roughly a quarter percentage. Such a slump is not be expected at present, however.
Such entities may not require a banking license but they need to be regulated similar to how such activities are regulated for a bank. Financial services are among the most regulated industries, if not the most regulated.