Shadow banking: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Create the page. Source: Financial Stability Board - Global Shadow Banking Monitoring Report 2013 - 14 November 2013 page 1.) |
imported>Doug Williamson (Link with Financial Stability Board page.) |
||
| Line 1: | Line 1: | ||
The system of credit intermediation that involves entities and activities fully or partially outside the conventional banking system. | The system of credit intermediation that involves entities and activities fully or partially outside the conventional banking system. | ||
Some non-bank entities and transactions have the capacity to operate on a large scale in ways that create bank-like risks to financial stability (longer-term credit extension based on short-term funding and leverage). | |||
Such risk creation may take place at an entity level but it can also form part of a complex chain of transactions, in which leverage and maturity transformation occur in stages, and in ways that create multiple forms of feedback into the regulated banking system. | |||
For this reason regulators are taking increasing interest in the activities of the shadow banking system. | |||
== See also == | == See also == | ||
* [[Financial Stability Board]] | |||
* [[Bank]] | * [[Bank]] | ||
* [[Intermediation]] | * [[Intermediation]] | ||
Revision as of 17:46, 14 November 2013
The system of credit intermediation that involves entities and activities fully or partially outside the conventional banking system.
Some non-bank entities and transactions have the capacity to operate on a large scale in ways that create bank-like risks to financial stability (longer-term credit extension based on short-term funding and leverage).
Such risk creation may take place at an entity level but it can also form part of a complex chain of transactions, in which leverage and maturity transformation occur in stages, and in ways that create multiple forms of feedback into the regulated banking system.
For this reason regulators are taking increasing interest in the activities of the shadow banking system.
