Shining a light on shadow banking

Shadow banking

In order to make the financial sector sounder and safer, it is now time to deal with the growing area of "shadow banking" – credit activity that is similar to a bank's, but is not regulated like a bank. To a certain extent, shadow banking performs important functions – for example, it creates additional sources of funding and offers investors alternatives to bank deposits. But it can also pose potential threats to long-term financial stability.

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