What does shadow banking system mean?

Definitions for shadow banking system
shad·ow bank·ing sys·tem

This dictionary definitions page includes all the possible meanings, example usage and translations of the word shadow banking system.

Wiktionary

  1. shadow banking systemnoun

    Non-bank financial institutions, that, like banks, borrow short and in liquid forms and lend or invest long in more illiquid assets.

Wikipedia

  1. Shadow banking system

    The shadow banking system is a term for the collection of non-bank financial intermediaries (NBFIs) that provide services similar to traditional commercial banks but outside normal banking regulations. Examples of NBFIs include hedge funds, insurance firms, pawn shops, cashier's check issuers, check cashing locations, payday lending, currency exchanges, and microloan organizations. The phrase "shadow banking" is regarded by some as pejorative, and the term "market-based finance" has been proposed as an alternative. Former US Federal Reserve Chair Ben Bernanke provided the following definition in November 2013: "Shadow banking, as usually defined, comprises a diverse set of institutions and markets that, collectively, carry out traditional banking functions—but do so outside, or in ways only loosely linked to, the traditional system of regulated depository institutions. Examples of important components of the shadow banking system include securitization vehicles, asset-backed commercial paper [ABCP] conduits, money market funds, markets for repurchase agreements, investment banks, and mortgage companies" Shadow banking has grown in importance to rival traditional depository banking, and was a factor in the subprime mortgage crisis of 2007–2008 and the global recession that followed.

Wikidata

  1. Shadow banking system

    The shadow banking system is the collection of non-bank financial intermediaries that provide services similar to traditional commercial banks. It is sometimes said to include entities such as hedge funds, money market funds and structured investment vehicles, but the meaning and scope of shadow banking is disputed in the academic literature. Investment banks as well as commercial banks may conduct much of their business in the shadow banking system, but most are not generally classed as SBS institutions themselves. At least one financial regulatory expert has said that regulated banking organizations are the largest shadow banks. The core activities of investment banks are subject to regulation and monitoring by central banks and other government institutions - but it has been common practice for investment banks to conduct many of their transactions in ways that don't show up on their conventional balance sheet accounting and so are not visible to regulators or unsophisticated investors. For example, prior to the financial crisis, investment banks financed mortgages through off-balance sheet securitizations and hedged risk through off-balance sheet credit default swaps. Some experts have said that regulated banking organizations are the largest shadow banks. No major investment banks exist in the United States other than those that are part of the regulated banking system.

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Numerology

  1. Chaldean Numerology

    The numerical value of shadow banking system in Chaldean Numerology is: 2

  2. Pythagorean Numerology

    The numerical value of shadow banking system in Pythagorean Numerology is: 4

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"shadow banking system." Definitions.net. STANDS4 LLC, 2024. Web. 19 Apr. 2024. <https://www.definitions.net/definition/shadow+banking+system>.

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